Hedge funds are making wagers against copper on the London Metal Exchange for the first in three years after prices tumbled following weaker than expected demand from the world's top consumer, China, according to a report by mining.com.

Hedge funds are making wagers against copper on the London Metal Exchange (LME) for the first in three years after prices tumbled following weak demand from the world's top consumer, China, according to a report by mining.com.

The report cites LME data as revealing that bearish bets surged in mid-April and long positions have been unwound as hedge fund positioning in copper flipped to a net short – a dramatic turnaround from earlier in the year when investors bet that renewed demand from China, plus constrained supplies, would push prices higher. 

With stockpiles on the LME having increased every day for five straight weeks though, short interest on the exchange is now near the highest level seen in data going back to 2018, while long bets are at their lowest level in seven months.