(Adds quotes and details in paragraphs 4-10) Some Japanese...

(Adds quotes and details in paragraphs 4-10)

Some Japanese aluminium buyers have agreed to pay global producers a premium of $97 per metric ton over the benchmark price for shipments in October-December, down 24% from the prior quarter, four sources directly involved in the pricing talks said.

The figure is lower than the $127.5 per ton paid in the July-September quarter and the initial offers of $110-$120 made by producers.

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

The decline reflected sluggish demand at home, especially in construction, and ample stockpiles, while weaker premiums in the U.S. and Europe amid slumping demand also weighed on sentiment, a source at a trading house said.

Although automakers are showing an appetite for the metal with the easing of the chip scarcity, "demand from other sectors stayed slow," the source said, noting the construction sector was badly hit due to a labour shortage and soaring materials costs.

Aluminium stocks at three major Japanese ports AL-STK-JPPRT were at

360,700 metric tons

as of end-August, above 250,000-300,000 tons that are considered appropriate, according to Marubeni 8002.T , despite

a 30% year-on-year cut

in Japan's import of primary ingots in January-August.

"A supplier has lowered its offer in stages from $120 to $103 by last week, but some buyers have sought $90-95 as the local spot premiums were below $90," said another source at a Japanese aluminium manufacturer.

"But we have come to terms as we wanted to conclude the talks faster than the past few rounds when the negotiations had dragged on for more than a month longer than usual," a third source at an end-user said.

The quarterly pricing talks began in late August between Japanese buyers and global suppliers, including Rio Tinto (RIO) and South32 (S32) , and they are still continuing.

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