This year, demand in the first half of 2008 in Asian economies, especially China, more than offset a slowdown in the United States and supported prices. Copper hit a record high of $8,940 a tonne in July on the London Metal Exchange.

But the tentacles of the global financial crisis have spread into Asia, depressing the outlook and driving the copper market down almost half from mid-year peaks.

From Mumbai to Seoul, analysts are paring consumption estimates, worried that a global slowdown, a possible recession and depreciating currencies will make life hard for consumers.

CHINA

Consumption growth in copper and aluminium in China, the world's top consumer of the two metals, may slow to 3 to 5 percent in 2009, from the 3 to 7 percent rise expected this year, and the 34 percent rise in 2007.

"We are worried about the global economy next year," said Jing Chuan, chief researcher at Great Wall Futures in Shanghai. "Next year's exports may be worse than this year."

A purchasing manager at copper user Kangqiang Electronics said demand next year would rely on the domestic market as the crisis may affect the real economy in some developed countries.

"If demand growth can reach 4-5 percent, it would be a good year," the manager said.

Aluminium consumption growth may fall below 10 percent next year, from 13-15 percent expected this year, down from earlier forecasts of 20 percent as exports orders fall.

Smelter officials and traders expect export orders to stay weak for at least six months, with demand from the construction sector unlikely to recover until the second half of next year. The sector accounts for 40 percent of the nation's consumption.

"Many fabricators are not confident about next year's orders. They are expecting a bad year," said a manager at a fabricator in Nanhai city in Guangdong province, home of hundreds of such plants.

SOUTH KOREA

South Korea is also expecting a slowdown in demand, weighed down by a weakening South Korean won.

South Korea is the world's sixth largest copper consumer. Its currency lost 26 percent since December and appears headed for its weakest year since the 1997/98 Asian financial crisis.

"Domestic base metals demand is seen weak as a depreciating local currency is making imports more expensive," said Lee Jae-ho, an official at the state-run Public Procurement Service, which is responsible for stockpiling non-ferrous metals for small and medium sized domestic firms.

The price outlook meant traders were focused on cutting copper stocks, further weakening the appetite for the metal.

Aluminium demand is also seen weakening and buyers are delaying purchases, betting prices will fall further.

"The outlook is quite uncertain, as demand turned sharply weaker in the wake of the global credit squeeze and as prices continue to fall," said a trader.

JAPAN

Japan's copper demand is likely to be hit by the deepening economic recession, particularly as it hits demand from the automobile sector, which accounts for about 10 percent of Japan's copper cable demand.

A company source at Toyota Motor Corp said on Oct 8 that the firm may cut its annual earnings forecast.

Falling demand in China, a key export market for Japan, is also a concern.

"The recent growth in Japan's copper consumption comes largely from gains made in exports," said Kenji Sawada, at state-affiliated Japan Oil, Gas and Metals National Corporation.

Japan's slowing auto sector is also likely to weigh on aluminium demand.

"We are pessimistic about the demand outlook. Especially, we are worried about cuts in auto production plans," said a trader at a Japanese aluminium products company.

"Overall domestic aluminium demand is falling slowly, but we are worried more about the fall in demand in Europe and mainly North America," the trader said.

INDIA

The outlook from India is also downbeat, with demand growth seen slowing significantly from recent years.

Ajit Advani, head of International Copper Promotion Council's India office said a slowdown in the global economy would have a negative impact on demand, but that could be cushioned by public spending on infrastructure.

"A major part of copper demand in India is linked to public investment in power infrastructure. There is no indication that this will slacken." But he added that construction would be hit.

In aluminium, analysts said demand growth would slow to around 9 percent in 2008/09, with consumption pegged ar around 1.37 million tonnes. Last year consumption grew 13 percent.