Copper steadied as stocks of the metal stored in LME warehouses dropped for the thirteenth consecutive day but weak housing data weighed on prices.

Inventories of the metal in LME-monitored warehouses across the globe fell by a hefty 1,050 tonnes to 180,500 tonnes since yesterday.

Copper has gained around 3 pct since last week amid depleting stocks.

At 11.22 am, LME copper for 3 month delivery was down at 6,840 usd a tonne against 6,852 usd at the close yesterday.

A new report by the International Copper Study Group (ICSG) which said global refined copper capacity is expected to reach 24.4 tonnes by 2011, up 18 pct from 2006, limited falls.

"China and Chile will be the main contributors to the total refinery capacity rise," noted the ICSG.

Weaker US housing data was likely to cap metals' prices, said UBS analyst Robin Bhar. However, while copper was hit the hardest, most other metals were resilient to the data, released yesterday, which showed new home sales drop by 3.9 pct in February to their lowest levels since 2000.

Base metals across the board were relatively steady in line with falling inventories and renewed confidence that Chinese demand was not easing.

"Falling inventories reinforced confidence that Chinese demand was recovering to a degree sufficient to offset lingering weakness in the US housing sector," said Deutsche Bank analyst Peter Richardson.

Tin stayed close to its fresh all time high of 14,575 usd struck yesterday amid depleting stocks and continued supply-side fears from Indonesia.

Tin was down at 14,450 usd against 14,530 usd at the close yesterday.

"The ongoing supply side problems from Indonesia's Bangka island in an environment of positive demand and low inventories should support tin prices higher through 2007," said Barclays in a recent report.

Barclays and Deutsche Bank both revised their forecast for tin, and indeed most other base metals, upward yesterday.

A government crackdown on illegal small-scale mining in Indonesia, the world's second biggest producer after China, is still hitting production levels.

Indonesian officials have reportedly indicated that private tin smelters look unlikely to receive export permits in the near future after being ordered to obtain new mining permits.

In other metals, nickel was up at 42,550 usd against 42,500 usd, lead edged higher to 1,895 usd against 1,891 usd while zinc was up at 3,260 usd at 3,250 usd. Aluminium was up at 2,739 usd against 2,725 usd yesterday.