After a five-week period of reducing their net long positions in copper, speculators have started adding net length again. This shift is driven by robust Chinese premiums, lower arrivals of copper, and continued inventory declines on both the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE), according to FX Street.
The combined effect of firm Chinese premiums and inventory draws at key global exchanges signals renewed confidence in copper demand, particularly from China, which remains a major driver in the metals market. These factors have encouraged market participants to increase their exposure to copper amid tightening supply conditions.
For Japanese investors, this development highlights the ongoing influence of Chinese demand dynamics on global commodity positioning, which can impact related equities and currency flows in the region.