Investment funds are shifting their focus from copper to alternative metals

Initially, the potential introduction of US tariffs on copper imports seemed to benefit traders of physical metals. However, subsequent ups and downs in the commodities market have hurt investment funds and their operations, Reuters reports.

Since American President Donald Trump initiated an investigation into copper imports in February, traders have focused on the difference between the metal’s cost on the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME). The agency says this pricing gap has diminished copper's role as a barometer for the global economy.

In recent months, experts have seen a big drop in investors' long positions on copper at the CME, as well as a fall in open interest. Some market players have shifted their focus to aluminum as a substitute for copper, perceiving it as a means to articulate a pessimistic outlook on the current global trade circumstances.

At the beginning of 2025, investment funds had a net long position of 134,000 contracts in copper. Nevertheless, this number has since dropped significantly, to 82,000, as analysts cited by Reuters have noted.