Some Q4 aluminium premiums $115/T -Japanese buyer

* Q3 premiums mostly settled at $75 * Premium last above $100 in 1995 * Deal likely to influence remaining talks By Miho Yoshikawa TOKYO, Sept 3 (Reuters) - At least one Japanese buyer said on Thursday his company has agreed to pay a premium of $115 per tonne for some of the primary aluminium ingots it will buy in the fourth quarter -- the highest premium in 14 years. This is an increase of more than 50 percent from the third quarter when the premium was mostly agreed at $75 over the London Metal Exchange cash price, including insurance and freight costs. The premium last rose above $100 in 1995, according to data kept by Reuters. "An agreement has been reached at $115," a Japanese official involved in the talks said. He said that although this covered less than 50 percent of the contract held by the company, the producer was a large supplier to Japan and that the agreement would have an influence on the remaining talks which would be continuing. "This is a producer that supplies a substantial volume to Japan, which means that this agreement will most probably have an impact on the progress of the remaining talks," he said. The Japanese industry has balked at paying a three figure premium for aluminium at a time when domestic demand, though showing signs of recovering, remains weak. Like other metals, Japan's demand for aluminium slumped dramatically from late last year as auto makers and other major manufacturers were forced to cut production in the face of the worst global economic downturn in decades. The Japanese industry's response to the crisis was to use up stocks, while cutting down imports. This resulted in a dramatic decline in aluminium stocks held at key Japanese ports, which plunged to 174,200 tonnes at the end of July, the lowest since records started to be kept 14 years ago by trading house Marubeni Corp. [ID:nT19390] Japanese end-users say they must now replenish depleted stocks, although regional supplies remain tight. Tight supply of spot aluminium has driven up premiums for physical metal by half in the past month, while South Korea's buying agency may take more than 10,000 tonnes before the end of the year despite strong premiums. [ID:nHKG240389] The agreed level was down from initial offers proposed for Q4 which were around $120-$130. An official with an end-user said that his company was still studying the situation. "A three figure premium is not one that we can easily agree to," he said. The first company official said that producers were bullish, however, saying supplies are tight. They will not be providing supplies in addition to the annual contracted volumes, which have been kept low due to the slump in domestic demand, he said.