Copper prices fell to about four-year low in international market following fears of low demand in the wake of global financial crisis. According to recently released data by the World Bureau of Metal Statistics, copper prices declined more than 55 per cent in this year. Analysts at Barclays Capital said that adverse is yet to come and next few quarters would see huge decline in demand as compared to current demand level in the market.

Copper futures declined 0.55 per cent on the New York Mercantile Exchange for March delivery. A fund manager at Gold Arrow Capital Management in New York, Gijsbert Groenewegen said, "Base metals are going to suffer for at least another year with the economy. It's not going to be a pretty next couple of months." Indian copper future also declined over 3 percent on Wednesday.

Companies have already good stock of copper and increasing inventories is a cause of low contracts rate. The market would have a surplus of 144,000 tons of metal next year which would further decline prices in coming times. Meanwhile, depreciation of dollar against Euro prompted investors to invest in alternative assets as per a retail-trading director at Equidex Brokerage Group, Ron Goodis. He said, "If the weakness in the dollar continues, it may spark a rally for all these commodities. Copper might be a follower."