*

Buyers consider offers too high, with spot prices below

$200/T

*

Q1 premium agreed at $228/T, highest in nearly 10 years

*

Negotiations expected to continue until later this month

(Recasts with another offer, adds bullets, quote in paragraph

8)

By Yuka Obayashi

TOKYO, March 6 (Reuters) - Global aluminium producers

have sought premiums of $245-$260 per metric ton from Japanese

buyers for April-June primary metal shipments, up 7%-14% from

the current quarter, four sources directly involved in pricing

talks said this week.

Japan is a major Asian importer of the metal and the

premiums for primary metal shipments it agrees to pay each

quarter over the London Metal Exchange cash price set

the benchmark for the region.

For the January-March quarter, Japanese buyers agreed to pay

a premium of $228 per ton , the highest in nearly

a decade and up 30% from the prior quarter.

The increase in proposed premiums reflected concerns that

fresh U.S. tariffs on Canadian aluminium could divert supply

from the Middle East, Australia or other regions that typically

serve Asia to North America, tightening availability in Asia, a

source at a Japanese trading house said.

U.S. President Donald Trump's new 25% tariffs on imports

from Mexico and Canada took effect on Tuesday. Trump also

announced plans last month to impose 25% tariffs on all steel

and aluminium imports into the United States, effective from

March 12.

"The jump in the offer was surprising as spot premiums in

Japan hover around $180 per ton due to sluggish demand and

efforts to reduce inventories by the fiscal year-end in March,"

the source said, adding that the talks might drag on due to the

wide gap between buyer and supplier expectations.

The last round of quarterly negotiations took about a month

longer than usual to conclude.

"After a producer offered $260, another supplier offered

$245. However, both are too high as the spot is below $200,"

said a source at a Japanese rolling mill.

The sources declined to be identified due to the sensitivity

of the matter.

The quarterly pricing negotiations began late last week

between Japanese buyers and global suppliers, including Rio

Tinto and South32 ( SHTLF ), and are expected to

continue until later this month.

Japan's influence in the price negotiations has waned as

primary aluminium imports have nearly halved over the past two

decades amid weakening domestic demand, causing producers to

prioritise the interests of higher-volume buyers.

(Reporting by Yuka Obayashi; Editing by Kim Coghill and

Subhranshu Sahu)