London-listed mining group Vedanta Resources today said it has sold 3,000 tonnes of aluminium ingots at a premium of $220 a tonne over the London Metal Exchange Price in the Asian market.
"Vedanta Group, India's largest Aluminium producer, has recently sold 3,000 metric tonne of Aluminium Ingots 99.7 per cent through a tender at a premium of $220 pmt over LME on a cost, insurance and freight (CIF) basis in the Asian market," the Anil Agarwal-led company said in a statement.
The metal will be shipped in three lots from July 2012 to September 2012.
The company said that the increase in premiums was an outcome of global "tightness in the physical market due to closure of smelters in recent quarters in the wake of low LME price."
Aluminium premiums are also increasing because of highly profitable financing deals and business consumers have to compete with warehouses to get hold of metal from producers, it said.
"While LME Prices remain subdued because of the current economic situation in Europe, higher premiums are helping smelters stay afloat," the company said.
Premiums in the US and Japan have already reached their record-high levels and this scenario is expected to continue unless there is an increase in interest rates or reduction in LME spreads.
Aluminium prices are hovering in the range of $1,878.50 to 1,920.50 a tonne on the LME.