Copper held its biggest loss in more than three weeks after traders made significant deliveries of the metal to London Metal Exchange warehouses, easing a historic squeeze. The deliveries alleviated concerns about immediate supply shortages that had driven prices higher. The LME cash-to-three-month spread had widened dramatically, indicating tight nearby supply.

The influx of metal into LME warehouses reduced the premium for immediate delivery, signaling a relaxation in the market. Traders had been concerned about a supply crunch due to low inventories and strong demand. The deliveries, which amounted to thousands of tonnes, helped normalize the forward curve.

Market participants are now watching whether the supply relief is sustained or if further disruptions could reignite tightness. Copper prices remain sensitive to inventory levels and global demand outlook, particularly from China. The metal's decline reflects the market's quick response to increased availability.

Analysts suggest that while the immediate squeeze has eased, underlying fundamentals remain supportive of prices in the medium term.