"Demand has increased a little from end users because imports into southern ports have stopped," a trader said. He said the import business was difficult and premiums were low.

The premium for copper cathode was $40 to $45 a tonne in Shanghai and Hong Kong CIF. In February the premium was $70 to $80 a tonne.

Another trader said the pick-up in year-end buying of copper may be related to import duties. "There is some year-end buying in China that may be duty-related," he said.

Negotiations were under way with Chinese smelters over contracts covering treatment and refining charges (TCS/RCs) for copper concentrates, a trader said.

Some smelters have covered their concentrate needs but others have not, the trader said. The charges, which are levied by smelters to refine copper concentrates produced bymines into copper cathodes, have been falling during the year.

A shortage of copper concentrate has forced smelters to reduce treatment and refining charges.

"We are offering $40 (a tonne) and four cents (a lb) for good material. The trend is continuing to be tight," a trader said.

A lot of smelters were reducing output and closing capacity and the trend could continue into 1999, traders said.

"If TCS/RCs keep going down, I don't think local smelters can survive," another trader said.

Copper producers in China cut back their production in July by 160,000 tonnes.

In Singapore traders said there were inquiries for zinc mainly from Taiwan and for aluminium from Taiwan and China, although prices were too high for Chinese buyers to ship aluminium from Singapore.

More copper and zinc shipments into Singapore were likely -- the former because of London Metal Exchange requirements and the latter due to regular deliveries from China, a trader said.

Aluminium demand strengthened in China as a result ofstricter enforcement of customs rules that has curtailed imports and because of steady activity by fabricators in southern China, a trader said.

Imports of aluminium have dropped sharply due to tighter enforcement of customs rules. The domestic price in China has risen to 14,200 yuan ($1,711) per tonne. That compared with a LME cash price on Monday of $1,280 per tonne.

Most aluminium imports are bought by end users in China, such as an extrusion plant, rather than by speculators, a trader said.

The aluminium premium ranged from $15 to $40 a tonne CIF Hong Kong depending on whether the buyers were traders or producers, traders said.