20 May | Other

Investment funds are shifting their focus from copper to alternative metals

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.

Anton Volkov MarketCheese
Period: 27.06.2025 Expectation: 1351 pips
GBPUSD under pressure from weak UK data and dollar strength
20 June 2025 61
Brent sell
Period: 26.06.2025 Expectation: 200 pips
Oil set to drop without further escalation of Middle East tensions
20 June 2025 60
Period: 30.06.2025 Expectation: 27200 pips
Buying ETHUSD during consolidation with 2800 target amid supply shortage
19 June 2025 82
Period: 25.06.2025 Expectation: 1500 pips
BOJ policy uncertainty pushes USDJPY toward monthly peak
19 June 2025 60
Period: 18.07.2025 Expectation: 2700 pips
Selling SPX to 5700
19 June 2025 29
Period: 30.06.2025 Expectation: 1069 pips
NVIDIA shares poised to rise on AI demand and European expansion
18 June 2025 70
Go to forecasts