Initial offers mark down 4%-up 6% vs this quarter One producer...

	  Initial offers mark down 4%-up 6% vs this quarter 

	  One producer cuts offer to $95/T from $105/T  

	  Local spot premiums were around $70-$80/T recently  

	  Negotiations expected to continue until late this month 

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Global aluminium producers have offered Japanese buyers premiums of $95-$105 per tonne for January-March primary metal shipments, down 4% to up 6% from the current quarter, three sources directly involved in quarterly pricing talks said on Wednesday.

Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region.

For the October-December quarter, Japanese buyers agreed to pay a premium of $99 per tonne PREM-ALUM-JP , down 33% from the prior quarter.

The quarterly pricing negotiations began late last month between Japanese buyers and global suppliers, including Rio Tinto Ltd (RIO) and South32 Ltd (S32) , and are expected to continue until late this month.

Initial offers were made earlier this month, but one producer has already cut its offer to $95 a tonne from $105, according to the sources.

"Japanese buyers are demanding even lower levels due to slack demand and higher inventories," a source at a Japanese rolling manufacturer said, adding that there have been spot deals with premiums of between $70 and $80 a tonne recently.

Aluminium stocks at three major Japanese ports AL-STK-JPPRT stood at 377,200 tonnes at the end of October, above 287,100 tonnes a year earlier, according to Marubeni Corp 8002.T .

"The negotiations may drag on as consumers and producers diverge on the demand outlook," a source at a trading house said.

The sources declined to be identified because of the sensitivity of the discussions.