Investors remained cautious amid debt problems in the United States and Europe, limiting the red metal's gains.
Three-month copper on the London Metal Exchange finished at $9,340 a tonne from $9,225 at the close on Monday. US May copper futures ended 3.15 cents, or 0.75 percent, higher at $4.2295 per lb.
"I think copper's getting a bounce off of positive housing numbers today. Earnings have been pretty good. Unfortunately, we have these debt problems and we'll see how those shake out. But for now, the market is choosing to look past it," said Matthew Zeman, head of trading with Kingsview Financial in Chicago.
US housing starts and permits for future home construction rose more than expected in March, snapping back from the prior month's winter-depressed levels, government data showed.
US housing starts rose 7.2 percent in March to an annual rate of 549,000 units, up from February's upwardly revised pace of 512,000 units and up from the 520,000-unit rate forecast.
"Although small in magnitude, any gain will suffice given February permits sank to what was originally thought to be a record low of 517,000. Therefore, the slightest increase in volume is good news," said Vimombi Nshom, economist at IFR Economics, a unit of Thomson Reuters.
In the previous session, copper fell almost 2 percent to its lowest in a month.
"The market panicked a bit yesterday, and they're feeling a little less panicked today," said BNP Paribas analyst Stephen Briggs.
"The reserve requirement rise in China and the S&P move was something (metals) had to react to, but the default position is that things are not as bad as all that."
Standard & Poor's threatened on Monday to downgrade the US prized AAA credit rating, raising concerns over the debt situation of the world's largest economy and second largest consumer of copper.
Earlier this week, China's central bank announced an increase in bank reserve requirement ratios (RRR).
A report that Greece may have to restructure its debt also weighed on market confidence.
But world markets bounced back from the previous session's trouncing after better-than-expected earnings results from investment banking bellwether Goldman Sachs.
In metals markets, expectations of a supply deficit this year and an optimistic long-term demand outlook provided support.
COPPER CONTANGO
Increasing copper inventories, however, have raised concerns about some short-term demand weakness from China. Inventories of copper on the London Metal Exchange rose 175 tonnes to 451,950 tonnes, its highest since June, the latest data showed. Inventory levels have been on the rise since December.
"Either demand for copper is lower than expected, off-exchange inventory is being moved on-exchange, or supply is greater than expected," said Bernstein Research in a note.
"Two of these three possible reasons would imply that there is a significant downside to copper prices from current levels."
The latest data showed copper was in a $21.50 contango, which is a discount for cash over three-month material, versus December's $70 backwardation, which is a premium for cash over three-month copper, reflecting a dearth of nearby demand.
Tin traded at $32,600 from $32,350, while zinc changed hands at $2,330 from $2,325, Monday's close.
Inventories of zinc on the London Metal Exchange rose 21,300 tonnes to 785,600, the most recent data showed, and are now within 2,000 tonnes of 2004 peaks.
Battery material lead traded at $2,552 from $2,528. The price of metal for tomorrow versus next day delivery traded as high as $10, indicating a lack of immediate supply.
Aluminium recovered to $2,682 from $2,674.