Demand for copper in China has fallen significantly against the backdrop of its high cost - the key indicator measuring it has reached zero, Bloomberg reports. Since the beginning of the year, the metal at the LME rose in price by almost 15%, but now the situation has changed, because, as noted by the head of Shanghai Wooray Metals Group Wang Wei, processing companies are not ready to buy it at current prices.

Copper's rally this year was fueled by hopes that global output would rebound and alternative energy players would need more of it. In reality, however, Chinese copper inventories are rising, spot prices are set below futures prices, and smelters are switching to exports.

On Tuesday, copper quotes showed the strongest intraday decline after February 8, but recovered the next day, as macro statistics in the U.S. again encouraged players to expect the Fed to move to lower the rate. Signs of weakening U.S. economy will be a supporting factor for copper and other metals, notes Bloomberg.