Three-month copper on the London Metal Exchange was $8,408 per tonne in official rings from a close of $8,570 on Monday. It was down more than 2 percent after US housing data, before recouping some of those losses. US housing starts fell last month, but permits for future construction jumped to their highest level since October 2008, according to a government report that showed steady improvement in the housing market. "There is a big difference between permits being awarded, and building taking place, but the housing data should be notionally positive," Citi analyst David Wilson said. "There are still concerns that China is slowing and not consuming as much copper, that's definitely been an issue," he added. The metal, used extensively in construction, hit its highest in two weeks at $8,690 on Friday and is up more than 12 percent this year, but has struggled to breach that level. "It's choppy within a range. It's partly dollar strength, but also I suspect a rather more cautious commentary from BHP," BNP Paribas analyst Stephen Briggs said. "There is a slowing trend in China...moving increasingly away from the growth model that they have had, which may be a little less metals intensive. This is not new, but recognition by big mining companies would have had an effect." Australian iron ore miners, key beneficiaries of China's modern-day industrial revolution, signalled on Tuesday demand growth was finally slowing in response to Beijing's moves to cool its economy. BHP Billiton said it was seeing signs of "flattening" iron ore demand from China, though for now it was pushing ahead with ambitious plans to expand production. Official Chinese data last week showed home prices fell in February from January for a fifth consecutive month, and the government reaffirmed its commitment to measures to control the property market to cool speculation. China accounts for 40 percent of global refined copper demand. Copper is used mostly in building construction and power. Demand in the world's biggest copper consumer has not picked up after the Lunar New Year holiday in late January, prompting importers to delay some term shipments, traders have said. The dollar rose against a basket of currencies, supported by safe-haven demand as risk sentiment soured, partly because of concerns that a slowdown in China could hit global growth. Gains in the dollar can pressure dollar-denominated commodities by making them more expensive for consumers using other currencies. European stocks fell on the scale of China's growth slowdown, and investors eyed talks between Italy's government and unions on reforms seen key to turning around the euro zone's third-largest economy. Nickel, used in steelmaking, was $18,825 in rings from $19,050 at Monday's close. It is the worst performing base metal in the complex so far this year, and is up around 1.6 percent, compared with copper's 12 percent rise. "Exchange inventories have risen over 8 percent and Chinese premiums remain weak," RBC Base Metals said about nickel in a research note. "That said, a move below $18,000 will begin to see a supply-side response." Zinc, used to galvanize steel, was untraded in rings, but bid at $2,041 from $2,079. Tin, also untraded, was bid at $23,200 from $23,595, lead was bid at $2,062 f rom $2,108. Aluminium was $2,239 in rings from $2,275. LME aluminium stocks fare near record highs at more than 5 million tonnes, but most of the metal is locked up in financing deals and not available for sale.