Copper: Speculators rebuild longs on tight supply – TD Securities

TD Securities’ commodity strategy team highlights that, after a five‑week reduction in Copper longs, speculators have resumed adding net length, supported by firm Chinese premiums, low arrivals and inventory draws on the LME and SHFE. While these factors could underpin further length additions, expectations of more Fed tightening may prompt quick position trimming if Copper fails to extend recent gains.

Tight physical market supports cautious length

"After a five-week unwind in copper longs, speculators returned to adding net length, with long exposure slightly outpacing new shorts."

"Physical conditions remained supportive, with premiums in China continuing to firm, as low arrivals and inventory draws across the LME and SHFE tightened metal availability."

"Middle East tensions kept supply risks in focus, although a softer CPI print helped ease macro pressures."

"These factors could support further additions to copper length, although expectations for further Fed tightening have yet to dissipate and specs may be quick to trim exposure if copper struggles to extend recent gains."