Japanese aluminum buyers agreed to pay 25%-higher premiums for metal deliveries in the second quarter, at US$129/tonne, Reuters reported March 20, citing sources directly involved in the pricing talks.

The agreed premium compares to US$103/t paid in the first quarter and is the highest in three years.

The higher premium reflects the rising spot premiums in the U.S, which were the highest in almost three years after President Donald Trump's blanket 10% duty on all aluminum imports earlier in March.

According to a trading source, the new premium is lower compared to the U.S. spot level but higher than current Japanese premiums in the low US$120/t range.