Speculative net long positions in LME copper saw a significant increase in the week ending 24 July, according to the latest COTR data highlighted by ING analysts Warren Patterson and Ewa Manthey. The net long position in LME copper rose by 12,668 lots to reach 60,771 lots, a move attributed to increased participation from both long and short positions [1].
The analysts note that this surge in speculative longs is supported by tight supply conditions and low inventories, which have contributed to improved broader market sentiment [1]. In contrast, positioning changes in other base metals were more modest. Money managers increased their net long exposure in LME aluminium by just 96 lots to 59,264 lots, while the net long in zinc rose by 4,107 lots to 39,736 lots [1].
The data suggests that copper is currently experiencing tighter fundamentals compared to aluminium and zinc, as reflected in the more pronounced increase in speculative long positions [1].
CONCLUSION
The notable rise in speculative long positions in LME copper underscores growing market optimism driven by tight supply and low inventories. While aluminium and zinc saw only modest changes, copper's fundamentals appear particularly strong, potentially supporting further positive sentiment in the near term.