At 10:06 IST, the BSE Metal index was down 2.87% at 14,496.57. It underperfoemed the Sensex, which was down 1.32% at 16,301.44.
Hindalco Industries (down 4.28%), Sesa Goa (down 3.84%), Sterlite Industries (down 3.72%), JSW Steel (down 3.30%), Jindal Saw (down 2.27%), Welspun Corporation (down 3.13%), Hindustan Zinc (down 2.46%), NMDC (down 2.31%), National Aluminium Company (down 2.13%), Jindal Steel & Power (down 1.85%) and Steel Authority of India (down 1.79%), declined.
The BSE Metal index had underperformed the market over the past one month till 20 May 2010, falling 16.66% compared with the Sensex's 5.39% decline. It underperformed the market in past one quarter, declining 5.58% as against 2.03% rise in the Sensex.
Three-month copper on the London Metal Exchange dipped $10 to $6,600, down nearly 5% in a week. LME copper has lost 18% since hitting this year's high above $8,000 a tonne in early April 2010, threatened by Europe's debt crisis and signs of further tightening in China, the world's largest consumer of metals.
Meanwhile, Shanghai's benchmark third month copper dropped 560 yuan to 53,420 yuan ($7,824) a tonne, heading for a weekly loss of more than 5%.
Marketmen are eyeing Chinese April trade data to release later today, 21 May 2010, which will include refined copper import figures. Initial data released earlier this month showed China's copper imports, including anode, refined, alloy and semi-finished products, fell 4.4% in April 2010, reflecting credit tightening.
Investors remain concerned that efforts by China to cool its economy including the central bank thrice raising banks' reserve requirement this year and clamping down on the property sector would choke demand for metals from Beijing.
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