TOKYO, Oct 24 (Reuters) - The premium for aluminium

shipments to Japanese buyers for October to December was set at

$86 per metric ton, down 20% from the previous quarter,

reflecting weak demand, five sources directly involved in the

pricing talks said.

The figure is lower than the $108 per ton paid in the

July-September quarter and marks a third quarterly decline. It

is also lower than the initial offers of $98-$103 per ton made

by 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 London Metal Exchange (LME) cash price

set the benchmark for the region.