Hedge funds increased their bullish positioning on copper to a five-month high, coinciding with a fresh record in New York Comex prices as investors responded to tightening supply conditions and signs of recovering demand from China, according to a report by Bloomberg.

Money managers and other large speculators lifted net-long positions by 16% to 73,523 contracts in the week ending May 12, according to U.S. government data. The reading marks the strongest bullish positioning in 20 weeks.

The shift in sentiment came as copper futures on the COMEX copper market reached an all-time high of $6.7160 per pound. The rally reflects a combination of improving industrial demand signals from China and growing concerns over constrained global supply.

Market participants have been weighing the impact of geopolitical tensions, including the ongoing Iran-related conflict, against broader growth expectations. So far, fears of supply disruption have outweighed concerns that higher energy prices could dampen global economic activity.

The metal’s strength underscores copper’s role as both a cyclical growth indicator and a supply-sensitive commodity, with positioning data suggesting investors are increasingly leaning into the bullish narrative despite elevated price levels.