Investment Funds expanded both long and short positions in zinc during the week to 30 October, pushing combined gross exposure to 55.32% of open interest. Lead's net short narrowed for a second consecutive week, while copper and aluminium continued to lose net length through different positioning mechanisms.
TL;DR
Zinc: Net length increased 5,321.26 lots to +40,353.45, with gross longs rising 12,961.52 lots and shorts increasing 7,640.26. Combined gross fund exposure reached 55.32% of open interest.
Lead: The net short narrowed 3,970.74 lots to −25,785.66, almost entirely through additional long positions rather than short covering.
Copper: Net length declined 986.28 lots to +24,448.61. Both gross books expanded, but short accumulation exceeded new longs.
Aluminium: Net length fell 613.06 lots to +119,763.53 as both gross books contracted, with long liquidation exceeding short covering.
Nickel: The net long slipped to just +753.96 lots despite growth in both gross books, leaving the market close to directional balance.
Tin: Net length declined 17 lots to +1,874, with modest reductions in both long and short positions.
The Positioning Board
The London Metal Exchange's weekly Commitments of Traders reports, published Tuesday 3 November, cover positions held at the close of Friday 30 October 2026. The figures below represent non-risk-reducing Investment Funds positions under the exchange's Other classification.
Metal
Gross long
Gross short
Net
Weekly Δ net
Holders
Δ holders
Aluminium
161,524.02
41,760.49
+119,763.53
−613.06
312
+4
Copper
52,585.01
28,136.40
+24,448.61
−986.28
236
+1
Zinc
126,835.07
86,481.62
+40,353.45
+5,321.26
309
+2
Nickel
47,235.69
46,481.73
+753.96
−241.94
278
−1
Lead
40,069.99
65,855.65
−25,785.66
+3,970.74
238
−5
Tin
2,578.00
704.00
+1,874.00
−17.00
91
+2
Source: LME MiFID II Weekly Commitments of Traders reports, positions dated 30 October 2026, published 3 November 2026. Figures are in lots. Weekly changes are taken directly from the current reports. Holder counts cover the Investment Funds category in aggregate, including risk-reducing positions.
The principal development is a reversal in zinc's net direction without any reduction in the scale of its opposing short book. Last week's report showed zinc losing net length while gross exposure continued to rise. This week, funds added substantially to both sides, with long accumulation exceeding the increase in shorts.
Lead also improved, but through a different mechanism. New long positions accounted for almost the entire reduction in its net short, leaving the existing short book broadly intact. Copper and nickel experienced a smaller version of zinc's two-sided expansion, although in both markets additional shorts exceeded new longs. These distinctions matter because the weekly net change alone can conceal substantial adjustments to the underlying books. A rising net long is not necessarily evidence of declining bearish participation, just as a falling net long need not mean that existing longs are being liquidated.
Zinc: Gross Fund Exposure Reaches 55.32% of Open Interest
Zinc recorded the largest positive change in net Investment Fund positioning among the six base metals. Gross longs increased 12,961.52 lots to 126,835.07, while gross shorts rose 7,640.26 lots to 86,481.62. Net length consequently increased 5,321.26 lots to 40,353.45.
The increase reverses the previous week's 1,292.62-lot reduction in net length, but it does not reverse the broader pattern of growing two-sided participation. Last week's report established that combined gross Investment Fund exposure had reached 52.50% of open interest, already the highest proportion among the six metals. The latest report puts that measure at 55.32%, with gross longs representing 32.89% of reported open interest and gross shorts 22.43%. Both proportions are substantial, and their simultaneous expansion is more informative than the increase in net length alone.
Long accumulation exceeded additional shorts by approximately 5,321 lots. That gives the weekly adjustment a positive directional balance, but the 7,640-lot increase in shorts demonstrates that opposing exposure was also being established. The result is a larger market footprint for both sides rather than a simple transfer from bearish to bullish positioning.
The long book is approximately 1.47 times the size of the short book. Zinc therefore remains net long, but the relationship between its gross positions is considerably less one-sided than aluminium's. The scale of both books also means that subsequent changes in either direction could produce sizeable net adjustments without requiring a corresponding increase in overall fund participation.
The Investment Funds holder count rose from 307 to 309. That measure includes risk-reducing positions and cannot establish how many participants added to the non-risk-reducing books. It nevertheless indicates that the substantial expansion in reported gross exposure did not coincide with an equally substantial increase in the number of holders. The next reporting period will be important for distinguishing whether zinc's long-led expansion continues or whether the additional short book begins to offset it more aggressively. For now, the strongest conclusion is that zinc has become the most heavily represented of the six markets in terms of combined gross Investment Fund exposure relative to open interest.
Lead: New Longs Narrow the Net Short
Lead recorded the second-largest positive adjustment in net positioning. Its net short narrowed 3,970.74 lots to 25,785.66, following a 3,714.87-lot improvement in the preceding report. The mechanism changed materially between the two weeks. In the week to 23 October, lead's net short narrowed through a combination of new longs and short covering, whereas in the latest reporting period gross longs increased 4,132.76 lots to 40,069.99 while gross shorts also increased, albeit by only 162.02 lots, to 65,855.65.
New long exposure therefore more than accounted for the improvement in net positioning, with the small increase in shorts offsetting part of that gain. That is a different development from a conventional short-covering rally. The existing short book has not been materially reduced; instead, the long side has expanded towards it, narrowing the difference between the two.
Lead remains the only metal among the six with a net Investment Fund short. Gross shorts represent 24.13% of open interest, compared with 14.70% for longs, leaving combined gross exposure at 38.83%, up from 38.71% in the previous published snapshot. The short book remains approximately 1.64 times the size of the long book, so the improvement has not removed lead's negative directional imbalance. It has, however, produced two consecutive reporting periods in which that imbalance has narrowed.
Across those two weeks, the exchange-reported net improvements total approximately 7,686 lots. That establishes a sustained change in the direction of weekly adjustments, although it does not establish whether the same participants were responsible or whether funds are preparing to move into an outright net-long position.
The holder count declined from 243 to 238. Because the count includes the wider Investment Funds category, it cannot be used to infer that five participants exited the non-risk-reducing short book. The increase in gross longs alongside a lower aggregate holder count is nevertheless a useful reminder that the number of participants and the size of their reported positions can move independently. The immediate question for lead is whether further long accumulation begins to challenge the persistent short imbalance, or whether the existing short book remains large enough to absorb subsequent changes without a directional reversal.
Copper: Net Length Falls as Both Books Expand
Copper's net Investment Fund position declined 986.28 lots to +24,448.61. The reduction was considerably smaller than the previous week's 8,453.29-lot deterioration, but the underlying mechanism changed: gross longs increased 1,163.75 lots to 52,585.01, while gross shorts rose 2,150.03 lots to 28,136.40, and the larger increase in shorts produced the net decline.
This contrasts with the two preceding reporting periods, when copper's positioning deterioration was dominated by substantial long liquidation. In the week to 23 October alone, gross longs fell 7,820.50 lots, following an 8,531.95-lot reduction in the preceding report. The latest figures therefore interrupt that pattern of outright long reduction. Existing long exposure is no longer contracting on a weekly basis, although the addition of shorts continues to reduce the net bullish balance.
Copper's gross long book now represents 13.01% of open interest, against 6.96% for shorts. Combined gross Investment Fund exposure stands at 19.97%, up from 18.75% in the preceding published snapshot. The increase in combined gross exposure is consistent with the simultaneous expansion of both books, and it reverses the previous week's reduction in copper's fund footprint.
The distinction matters for interpretation. Copper's net long has continued to weaken, but the latest deterioration is not evidence of another large wave of long liquidation. It reflects renewed two-sided positioning in which the short side expanded more rapidly. The holder count increased marginally from 235 to 236, and as with the other metals the aggregate count does not identify the participants responsible for the weekly changes.
Copper remains net long, but the reduction in its directional imbalance has now occurred through two different mechanisms across successive reporting periods. Whether the next release returns to long liquidation or extends the present expansion in shorts will help establish which process is becoming more important.
Aluminium: Both Books Contract, but Net Length Still Declines
Aluminium retained the largest absolute net Investment Fund long among the six metals, at 119,763.53 lots. Its net position declined 613.06 lots during the latest reporting period, a considerably smaller adjustment than the previous week's 3,027.59-lot reduction, and the composition also reversed. Gross longs fell 3,829.60 lots to 161,524.02, while gross shorts declined 3,216.54 lots to 41,760.49, so long liquidation exceeded short covering by 613.06 lots and produced the decline in net length.
In the preceding report, aluminium's net deterioration was driven primarily by additional shorts, while the long book remained broadly stable. This week's figures instead show both sides reducing exposure, with the contraction in longs only slightly larger than the reduction in shorts.
Aluminium's long book remains approximately 3.87 times the size of its short book. Gross longs represent 17.83% of open interest, compared with 4.61% for shorts, leaving combined gross fund exposure at 22.44%. That is down from 23.59% in the previous published snapshot and reflects a smaller reported fund footprint relative to open interest.
The decline in gross exposure distinguishes aluminium from zinc, copper, nickel and lead, where both sides of the Investment Fund book expanded. It also means aluminium's relatively stable net position should not be interpreted as evidence that participants maintained their gross commitments unchanged. The Investment Funds holder count rose from 308 to 312, even as both non-risk-reducing gross books contracted, which again illustrates the limits of using holder numbers as a proxy for directional participation.
Aluminium's large positive imbalance remains intact. The latest report does not show a broad liquidation of its net-long position, but it does show a reduction in the size of both opposing books after a preceding week characterised by additional short accumulation.
Nickel's net Investment Fund long declined 241.94 lots to just 753.96, leaving the market close to directional balance for another reporting period. Gross longs increased 1,383.11 lots to 47,235.69, while gross shorts rose 1,625.05 lots to 46,481.73, with the additional short exposure exceeding new longs by the amount of the net decline.
That composition contrasts with the preceding report, when both gross books contracted and net length increased because short covering exceeded long liquidation. The latest release therefore shows renewed expansion on both sides of a market that remains almost evenly balanced. Gross longs represent 13.90% of open interest and shorts 13.68%, leaving combined gross exposure at 27.58%, compared with 27.28% in the previous published snapshot.
The long and short books differ by less than 1,000 lots despite each containing more than 46,000 lots. Nickel's near-zero net position therefore does not indicate an absence of Investment Fund exposure; it reflects substantial opposing positions that almost offset one another. This is an important distinction from a market in which both gross books are small, because a relatively modest change in either nickel book could materially alter the net position without representing a large change in combined gross participation.
The holder count declined slightly from 279 to 278, offering little evidence of a material change in the breadth of the Investment Funds category. Nickel remains one of the clearest examples of why net positions should be assessed alongside gross longs, gross shorts and open-interest shares. Its directional balance is close to neutral, but its gross fund footprint remains considerably larger than those of copper, aluminium and tin.
Tin: A Marginal Reduction in Net Length
Tin recorded the smallest absolute weekly net adjustment among the six metals. Gross longs declined 23 lots to 2,578, while gross shorts fell six lots to 704, so net length decreased 17 lots to 1,874. The reduction follows the preceding week's 44-lot increase in net length and leaves the overall position little changed, with both gross books contracting and the larger decline in longs producing the modest net deterioration.
Tin's gross longs represent 10.61% of open interest and shorts 2.90%, leaving combined gross exposure at 13.51%, down from 13.63% in the preceding published snapshot. It remains the smallest of the six Investment Fund books in absolute lots and in combined gross exposure relative to open interest. The latest report provides little evidence of a significant directional adjustment in tin, and the small weekly decline is more appropriately understood as a limited contraction in gross exposure than as a material change in the existing net-long position. The holder count increased from 89 to 91, although that aggregate measure does not identify changes in non-risk-reducing positions.
Open Interest: Zinc Extends Its Lead
The six metals continue to show substantial differences in the scale of Investment Fund exposure relative to their respective open-interest bases.
Metal
Long / OI
Short / OI
Combined gross / OI
Zinc
32.89%
22.43%
55.32%
Lead
14.70%
24.13%
38.83%
Nickel
13.90%
13.68%
27.58%
Aluminium
17.83%
4.61%
22.44%
Copper
13.01%
6.96%
19.97%
Tin
10.61%
2.90%
13.51%
Source: LME MiFID II Weekly Commitments of Traders reports, positions dated 30 October 2026. Percentages represent the Investment Funds Other classification. Combined gross exposure adds the reported long and short percentages.
Zinc remains the clear outlier. Its combined gross exposure now exceeds 55% of open interest, with substantial positions on both sides, and the increase from 52.50% in the previous published snapshot extends the trend identified in last week's analysis. Lead remains second, although its composition is different: the short book is the larger side, and the latest increase in longs has narrowed rather than eliminated that imbalance.
Nickel has the most balanced directional structure, with gross longs and shorts representing almost identical shares of open interest. Aluminium has the strongest long-side imbalance, while copper's net-long position has continued to narrow despite renewed growth in gross exposure. Tin remains the smallest fund footprint on this measure.
These percentages should not be interpreted as unique contract ownership or as a measure of net market share. Long and short positions are counted separately, and both sides can be represented within the same open-interest base. The measure is useful for comparing reported gross Investment Fund participation across metals, not for identifying the ultimate ownership of individual contracts.
What the Weekly Changes Reveal
The latest reporting period divides the six metals into three distinct positioning groups. Zinc, copper, nickel and lead all recorded increases in both gross longs and gross shorts, with the net outcome depending on which side expanded more rapidly: zinc and lead improved because new longs exceeded additional shorts, while copper and nickel deteriorated because short accumulation was larger. Aluminium and tin followed a different pattern, both recording contractions in their long and short books, with long liquidation exceeding short covering and producing relatively small declines in net length.
The most important change from last week's report is the disappearance of large-scale copper long liquidation as the dominant weekly adjustment. Copper's long book expanded modestly, while the larger increase in shorts continued to reduce its net bullish balance.
Zinc has instead become the principal source of gross positioning expansion. Its long book increased by almost 13,000 lots, while the short book grew by more than 7,600. That produced the largest positive net adjustment and further increased the market's already substantial gross Investment Fund footprint. Lead's improvement is also significant because it represents a second consecutive reduction in the net short, although the latest change came overwhelmingly from additional longs rather than the liquidation of bearish exposure.
Across the complex, the figures do not establish a coordinated shift towards or away from industrial metals. The COTR records positions by participant category, not the motivations behind individual trades or the relationships between participants' positions across contracts. The evidence supports a more differentiated conclusion: zinc's two-sided fund exposure is expanding rapidly, lead's negative imbalance is narrowing through new longs, copper's recent liquidation pattern has changed, and nickel remains directionally balanced despite renewed growth in both gross books.
The Bottom Line
Zinc was the principal development in LME Investment Fund positioning during the week to 30 October. Gross longs increased 12,961.52 lots and gross shorts rose 7,640.26, lifting net length to 40,353.45 lots and combined gross exposure to 55.32% of open interest. The expansion reinforces zinc's position as the most heavily represented of the six base-metal markets on this measure, and it demonstrates why a rising net long should not automatically be interpreted as declining bearish participation: both sides of the book increased substantially.
Lead's net short narrowed for a second consecutive week, reaching 25,785.66 lots, but the latest improvement was driven almost entirely by new longs and its existing short exposure remains substantial. Copper and nickel also expanded both gross books, with short accumulation exceeding additional longs, while aluminium and tin moved in the opposite direction, recording contractions in both books and relatively modest declines in net positioning.
The central distinction is therefore between the direction of net exposure and the scale of the positions behind it. Zinc's positive adjustment occurred alongside rapid growth in opposing positions; lead's improvement occurred without meaningful short covering; and nickel's near-neutral net position continues to conceal considerable gross exposure. The weekly data show a more active and differentiated fund book, not a uniform directional move across base metals.
FAQ
Which LME metal recorded the largest increase in net Investment Fund positioning?
Zinc. Net length increased 5,321.26 lots to +40,353.45, with gross longs rising more rapidly than gross shorts.
Why is zinc's 55.32% open-interest figure significant?
It is the highest combined gross Investment Fund exposure relative to open interest among the six base metals. The figure combines reported long and short positions; it does not represent unique contract ownership.
Is lead still net short?
Yes. Lead's net Investment Fund short narrowed to 25,785.66 lots, but gross shorts of 65,855.65 lots remain substantially larger than gross longs of 40,069.99 lots.
Has copper stopped losing net length?
No. Copper's net long declined another 986.28 lots. However, unlike the preceding two reporting periods, the latest decline was driven by shorts increasing faster than longs rather than by outright long liquidation.
Is nickel now net short?
No. Nickel remained marginally net long by 753.96 lots. Its gross long and short books are nevertheless close to equal.
Why can gross exposure increase while a net position declines?
Because longs and shorts can both increase, with shorts growing more rapidly. Copper and nickel both displayed that pattern in the latest reporting period.
Data and Source Note
All positioning figures are taken from the London Metal Exchange MiFID II Weekly Commitments of Traders reports for Aluminium High Grade (AH), Copper A Grade (CA), Special High Grade Zinc (ZS), Primary Nickel (NI), Lead (PB) and Tin (SN). The reports cover positions dated Friday 30 October 2026 and were published Tuesday 3 November 2026.
The analysis uses the Investment Funds category's non-risk-reducing Other positions. Net positions equal gross longs minus gross shorts. Weekly changes are taken directly from the exchange's 3 November reports rather than calculated from previously published reporting vintages.
Holder counts cover the Investment Funds category in aggregate, including both risk-reducing and non-risk-reducing positions. Weekly holder changes compare the 3 November reports with the 27 October reports.
Open-interest percentages are those published by the LME. Combined gross percentages add the long and short percentages and should not be interpreted as unique contract ownership or net market share. Contract sizes differ across metals, so absolute lot counts are not directly comparable measures of economic exposure.
The COTR is a weekly snapshot of reported positions. It does not identify individual participants, their trading intentions, the timing of transactions within the reporting period or the reasons for changes in positions. It should not be treated as a standalone indicator of future prices.
This research is provided for information and analysis only. It does not constitute investment advice, a recommendation or an offer to buy or sell any financial instrument. Positioning data describe reported historical exposures and do not predict future market performance.
