*

Some buyers agree Q1 premium at $228/T, highest since 2015

*

China tax change, strong alumina prices boost supply

concerns

*

Negotiations are still ongoing

(Adds details and comments in paragraphs 2, 4-11)

By Yuka Obayashi

TOKYO, Dec 16 (Reuters) - Some Japanese aluminium buyers

have agreed to pay a global producer a premium of $228 per

metric ton over the benchmark price for shipments from January

to March, up 30% from this quarter, two sources directly

involved in the talks said.

The fourth consecutive quarterly increase, the figure

exceeds the $175 per ton paid in the quarter from October to

December. It is also the highest premium since 2015, though

slightly lower than the initial offers of $230-$260 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 benchmark London Metal Exchange (LME)

cash price set the yardstick for the region.

Negotiations between other buyers and sellers are still

ongoing.

The agreement comes amid concerns over tighter supply in

Asia after China said it would cancel a 13% export tax refund

for aluminium semi-manufactured products from Dec. 1.

The move is expected to boost ingot demand from Asian

rolling mills outside China to produce semi-finished products, a

source at a global producer said, noting that inquiries for the

primary metal is already increasing.

Strong global alumina prices, which prompted some producers

to reduce aluminium output, along with civil unrest in

Mozambique, have heightened worries over tighter global supply

and higher premiums, the source said.

The sources declined to be identified due to the sensitivity

of the matter.

Russian aluminium producer Rusal said in November

that it will cut output by more than 6% in response to high

global alumina prices and as tight monetary policy and an

economic slowdown dampen domestic demand for the metal.

Last week, Australia's South32 ( SHTLF ) said that it has

withdrawn its output forecast for its Mozal Aluminium smelter in

Mozambique amid post-election civil unrest.

"Although Japanese domestic demand remains sluggish, we

settled at $228 due to overseas supply risks and the possibility

that prolonged negotiations could push prices even higher,"

another source at a Japanese end-buyer said.