"Sentiment improved a little, simply because there is no bad news, but the market is still not moving very much in terms of real trading," said one Singapore-based trader.

Copper premiums edged slightly higher to above $20 from $15/$20 last week, traders said. "I don't see any chance for copper premiums to move any higher," the trader said, noting there already was a lack of buyers last week when premiums were lower.

An apparent squeeze that emerged in the copper market in August continued to affect the market structure, including sporadic backwardations and a sharp premium of the COMEX spot price to the London Metal Exchange cash price.

Another Singapore trader said a copper shipment of unknown quantity was heading toward Singapore. The origin of the shipment was not clear.

"Warehouse stocks here are building up but nothing is goingout," the trader said of copper. In aluminium trading, premiums were also slightly higher after Japanese buyers and Australian suppliers settled premiums for Japan's fourth quarter term contracts, traders said.

Aluminium premiums were seen by the trade at between $45 and $50, from between $40 and $45 a week ago, with expectations that there would be no major change in supply and demand for the rest of the year.

"Premiums are recovering a little after Japanese premiums were settled, although nothing much is being discussed at the moment," said one trader with a European trading house.

Since many aluminum shipments have been re-directed to the United States and Europe in the past few months due Asia's financial crisis, there was little pressure from incoming supplies, the trader said.

Offers for Russian supplies were few and premiums still stayed low at around $40 following a tumble in the Russian rouble.

"There have not been many inquiries. You can still get something but the number of offers isdecreasing," said one aluminium trader with a Japanese house.

Traders said they expected a quiet market for the fourth quarter amid high stocks in Japan and a continuing lack of demand.

"The stronger Japanese yen should help activities in Japan but there is little improvement. There is simply no demand for aluminium and the market is not digesting the stocks," said the Japanese trader.

Premiums for zinc remained low at between $5 and $10 and one trader said there were no inflows from China, which usually ships its zinc to Singapore for Southeast Asia.