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The phrase "demand declining" is correct and usable in written English.
It is generally used to refer to decreases in the demand for goods or services. For example, "The demand for the company's products has been declining steadily over the past few months."
Exact(4)
I believe that with global economies slowing, the dollar strengthening and U.S. demand declining, even the threat of hurricanes can't keep oil's price up.
The usual suspects rising global demand, declining production and foreign oil cartels–have all played a role in the reversal in one way or another, but the primary reason is more complicated.
With the Japanese economy marginally improving and jewelry demand declining since 1997 ("All the hip hop guys are into diamonds now, not gold"), Norman says gold prices are bound to head south, especially given the rising amount of worldwide production.
In the late 1970s, TVA found itself in a similar situation -- sagging demand, declining sales and lower revenues.
Similar(53)
When demand declines, prices fall.
When the war ended however, allotment demand declined.
And as demand declines, the supply side dries up.
As a result, aggregate demand declines putting further downward pressure on prices.
Rich countries again consumed less; so energy demand declined for the third out of the past four years.
The Commerce Department reported that foreign demand declined for American-made cars and farm goods.
Demand declined for seasonal products including lawn and garden items, the company said.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com