Copper loses positions amid increasing inventory levels – TDS

The industrial metals continue to slide into the end of the week, analysts at TD Securities say.

Market unwinds its long positions on industrial metals

"With few signs of physical tightness, and increasing inventory levels across the globe, Copper remains at risk given macro traders have already built an extremely bloated long position. As traders begin to lose patience with the fundamental narrative, we have seen money managers unwinding their large long positions."

"With that said, Commodity Trading Advisors (CTAs) joined the selling party, liquidating roughly 8% of their historical max position, however the margin of safety before the next round of selling remains large with the level sitting at $9,071/t."

"Additionally, the melting price action could put both Aluminium and Zinc at risk of selling below $2,435/t and $2,722/t respectively."