Nalco (down 2.29%), NMDC (down 2.09%), SAIL (down 1.1%), JSW Steel (down 0.81%), Sesa Goa (down 0.7%), Jindal Steel & Power (down 0.25%), Tata Steel (down 0.23%), Coal India (down 0.19%) and Hindustan Zinc (down 0.04%), edged lower.

The BSE Metal index was down 0.27% at 9,835.41. It outperformed the Sensex, which was up 0.30% at 15,995.48.

The BSE Metal index had underperformed the market over the past one month until 23 May 2012, falling 9.99% compared with the Sensex's 6.72% fall. The index had also underperformed the market in past one quarter, falling 17.43% as against 11.78% fall in the Sensex.

The LMEX dropped on Wednesday after China's manufacturing activity contracted at a faster pace in May as conditions for exporters worsened during the month, the preliminary findings of a survey by HSBC showed. The "flash" reading of the manufacturing Purchasing Managers' Index dropped to 48.7 in May from a final print of 49.3 in April, HSBC said. A measure below 50 in the survey indicates deterioration, whereas one above that figure shows an improvement. China is the world's largest consumer of copper and aluminum.