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Copper speculation positioning increased on the week, but investors continue to shy away from the industrial metal as both longs and shorts exited the market, per TD Securities.

Key quotes

“Continued deterioration in demand, as highlighted by our real-time commodity demand indicator, remains the largest driver for the red metal.”

“As the world remains closed for longer there could still be another leg lower in copper prices.” 

“We believe the demand drag will continue to be the overwhelming factor, while reduced supply and additional stimulus down can only help mitigate downside as swollen inventories are likely to prevent a bullish response.”