Copper markets face record speculative crowding and inventory depletion

Copper markets are experiencing significant volatility and record-breaking activity. In the Commitments of Traders report, large speculators have reached an all-time extreme in net long positioning, a level of crowding never before recorded in available data. While this does not guarantee an immediate price reversal, it increases market vulnerability to shifts in sentiment.

Simultaneously, the London Metal Exchange (LME) is seeing spot contract premiums reach five-year highs due to a critical depletion of warehouse inventories. LME holdings have declined for 42 consecutive days, the longest uninterrupted reduction since 2014. This drawdown is attributed to metal being shipped to the United States and China.

Spot copper prices have hovered near $14,500 per tonne, with some analysts anticipating new all-time highs. In New York, Comex copper prices remain near record levels, reflecting the global tightness in physical supply.