Metals retreated further on Thursday, 10th May as the investors jitters about the political deadlock in Greece and Spanish banking woes coupled with the bleak Chinese trade data in which imports and exports shown a sluggish growth and missed the expectations pulled down the metals. But, the fundamental support amidst the decline in Copper inventories at LME and the prices below the $8000 per tonne levels prompted Chinese consumers to enter into buy positions which is cramping the further in the Copper.

LME Copper was dropping by 0.3% at $8054.75 per tonne on Thursday and Comex for Copper future the most active July contract remained unchanged at $3.6595 a pound. SHFE Copper future for most active August 2012 contract settled at 57560 yuan per tonne, up by 0.5% (270 yuan). Likewise at MCX, Copper for delivery in June was trading easing by 1% or Rs 4.35 at Rs 434.25 per kg.

The dollar index after rising to mid-March 2012 levels, shed by 0.1% at 80.11 against the basket of 6 major currencies amidst the mixed global economic uncertainities.

Greece's Evangelos Venizelos, the socialist Pasok leader and former finance minister, will try to form a government after three days of political impasse. Europe's bailout fund confirmed yesterday it would release 5.2 billion euros ($6.74 billion) of aid to Greece.

Meanwhile, Chinese customs reported that export and import growth for April both fell well short of expectations, raising new worries on sagging global demand. China's exports grew 4.9% in April on y-o-y, slower than forecast for 9.1% growth, while imports rose a mere 0.3% from last year, much weaker than the consensus estimate for a 12.5% growth.

China unwrought Copper and Copper product imports declined by 19% to 375258 tonnes in April on m-o-m basis. Heavy stocks of Copper in China warehouses were expected to draw down the imports and that has been depicted in April. The China unwrought Copper and Copper products imports were up by 43% to 262676 tonnes in April on y-o-y basis. This is due to the fact that China was on a stocking spree from last one year that has now created a grave supply glut of the metal.

China unwrought Aluminium imports declined by 22% to 94352 tonnes in April 2012 on m-o-m basis. While China unwrought Aluminium imports moved up by 18% on y-o-y basis, total imports were 79724 tonnes in April 2011.

China unwrought Aluminium exports have been dropped both on yearly as well as monthly basis. The total unwrought Aluminium exports from China declined by 20% to 54105 tonnes in April 2012 on m-o-m basis. The exports of Aluminium from China also declined on y-o-y basis by 11% from 60722 tonnes in April 2011.

In industrial metal news, BHP Billiton announced that it will consolidate its stainless steel materials and aluminum operations into a single customer sector group named Aluminium and Nickel and was planned to be headquartered in Perth in Western Australia.

Among other metals at LME, Aluminium was also trading at $2043.25 per tonne, down 0.7% and Zinc was slumping by 0.7% at $1941.5 per tonne. Lead was dropping by 0.3% at $2072 per tonne while Nickel was also tumbling by 0.8% at $17126 per tonne.

Among other metals in the domestic market at MCX, Aluminium was trading lower by 1.4% or Rs 1.5 at Rs 108.25 per kg and lead was dropping by 0.9% or Rs 1 at Rs 110.7 per kg. Zinc was plunging by 1.3% or Rs 1.4 at Rs 104 per kg. Nickel for delivery in May tested an intraday high of Rs 929.7 per kg and low of Rs 918.2 per kg and is trading at Rs 921.1 per kg, down 1.2% or Rs 10.9.

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