TOKYO, Oct 17 (Reuters) - Quarterly pricing talks

between Japanese aluminium buyers and global producers have

stretched unusually long as both struggle to close a wide gap on

primary metal shipments for October to December, three sources

directly involved in the talks said.

Japan is a major Asian importer of the metal and the

premiums it agrees to pay each quarter over the London Metal

Exchange (LME) cash price set a regional benchmark, but it is

unusual for talks to stretch weeks past the quarter's start.

The talks between Japanese buyers and global suppliers, such

as Rio Tinto, and South32 ( SHTLF ), began early

in September.

Producers initially offered Japanese buyers premiums of $98

to $103 per ton for October-December shipments, down 5% to 9%

from the July-September level, amid sluggish demand.

One producer later cut its offer to as low as $97 from $103,

but buyers declined, seeking levels in the $80s and citing spot

premiums in the $70s, the sources said.

"The $97-offer has expired once and we have asked the

producer to make a fresh offer," said a source at a Japanese

fabricator, adding that weak demand and high inventories are

keeping bids in the $80s.

Aluminium stocks at three major Japanese ports

rose to 341,300 metric tons by the end of

September, up 1.8% from the previous month, trading house

Marubeni ( MARUF ) said on Friday.

Sellers are holding out for higher levels as rising premiums

in the United States and Europe are expected to tighten supplies

in Asia, a source at a producer said, adding that talks could

continue toward the end of this month.

The sources declined to be identified as the matter is a

sensitive one.