TOKYO, July 18 (Reuters) - The premium for aluminium

shipments to Japanese buyers for July to September was set at

$172 per metric ton, up 16%-19% from the previous quarter,

reflecting tighter supplies in Asia, five sources directly

involved in pricing talks said.

The figure is higher than the $145-$148 per ton paid in

April to June and marks a second consecutive quarterly increase.

But it was below the initial offers of $175-$190 per ton made by

global producers.

Japan is a major Asian importer of the light metal and the

premiums for primary metal shipments it agrees to

pay each quarter over the benchmark London Metal Exchange cash

price set the benchmark for the region.

The increase from the previous quarter reflected tighter

supplies in the region as some metals were diverted to Europe

and the United States where premiums were higher and demand was

stronger, a source at a global producer said.

Demand for the light metal in Japan remained lacklustre, all

the sources said.

Aluminium stocks at three major Japanese ports

stood at 317,860 metric tons at the end of June,

up about 3% from the previous month, according to Marubeni Corp ( MARUF )

.

The quarterly pricing talks began in late May between

Japanese buyers and global suppliers including Rio Tinto

and South32 ( SHTLF ).

One producer lowered its offer to $172 per ton late last

week after raising it once in mid-June to $185 from the initial

proposal of $175, as the talks were dragging longer than usual,

another source at a Japanese end-user said.

The negotiations usually end before the new quarter begins,

but this time it took longer to settle due to wider gaps between

buyers and sellers after the producer temporarily hiked its

offer despite weak local demand, the second source said.

The sources declined to be identified because of the

sensitivity of the discussions.

For a table of prices, please click on