CFTC reports COMEX copper speculators reduced net long positions by 3,051 contracts to 23,625 as of June 17.

CFTC reports COMEX copper speculators reduced net long positions by 3,051 contracts to 23,625 as of June 17.

The copper market continues to experience significant pressure, with the Commodity Futures Trading Commission (CFTC) reporting a reduction in net long positions by COMEX copper speculators. As of June 17, the net long positions decreased by 3,051 contracts to 23,625, indicating a notable shift in market sentiment [1].

This reduction comes amidst a backdrop of historic backwardation in the copper market. Traders are reacting to rapidly falling inventories, potential US tariffs, and a pricing crisis at smelters. Spot copper traded at a $345-per-ton premium to three-month futures on Monday, the highest level since a record surge in 2021, signaling a tightening supply [2].

The London Metal Exchange (LME) stockpiles have plunged by about 80% this year, equating to less than a day of global usage. This depletion has been driven by a global race to move copper to the US ahead of potential import levies. In April, refined copper imports to the US topped 200,000 tonnes, the highest monthly level in over a decade, further exacerbating the supply constraints [2].

Copper smelters in China are now desperate to find raw materials, paying miners to convert their concentrates into refined metal. Spot treatment charges have fallen to $45 per ton (TC) and -4.5 cents per lb (RC) level, reflecting excess smelting capacity and insufficient raw material supply [2].

The LME has implemented measures to curb backwardation, but trading data suggests the copper squeeze is more systemic. The sharp backwardation, evident through June 2026, indicates broader market pressure. On Monday, the COMEX copper for July delivery slipped 0.2% to $4.83 per pound ($10,626 per tonne) [2].

Meanwhile, Monumental Energy Corp. has announced the successful completion of a workover and resumption of commercial production at the Copper Moki-2 well in New Zealand. The well, located in the Taranaki Basin, is expected to contribute to significant flush production rates and increase overall output [3].

The market dynamics suggest that the copper squeeze is likely to persist, with supply constraints and tariff speculation continuing to influence prices. Investors should closely monitor the developments in the copper market, including any further changes in inventory levels and regulatory decisions.

References:
[1] CFTC reports COMEX copper speculators reduced net long positions by 3,051 contracts to 23,625 as of June 17.
[2] https://www.mining.com/copper-squeeze-deepens-as-lme-stockpiles-plunge/
[3] https://www.morningstar.com/news/business-wire/20250623737780/monumental-energy-announces-completion-of-workover-and-resumption-of-commercial-production-at-the-copper-moki-2-oil-and-gas-well-in-new-zealand

Ask Aime: Copper Market Struggles Through Supply Constraints