METALS-LME copper falls with muted risk appetite ahead of bumpy next week

(Updates prices) By Polina Devitt LONDON, March 28 (Reuters) - Copper prices fell on Friday with risk appetite muted by next week's deadline for broad U.S. reciprocal tariffs and stimulus to deliver copper to the U.S. ahead of possible metal-specific tariffs easing. Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.7% at $9,780.50 a metric ton by 1722 GMT after hitting $9,739, its two-week low. The metal, used in power and construction, is so far up 11.5% this quarter, on track for its best quarterly growth in four years, prompting some to book profits. Uncertainty is high as U.S. President Donald Trump plans to announce reciprocal tariffs aimed at the countries responsible for the bulk of the U.S. trade deficit on April 2 and his already announced 25% tariffs on auto imports would take effect on April 3. Expectations that Washington's separate investigation on whether to impose new import tariffs in copper would take months shifted to weeks on Wednesday, narrowing down the window for arbitrage play between the most active U.S. Comex copper futures HGc2 and the LME ones. The premium of Comex over LME prices, a global benchmark, eased to $1,549 a ton, or 16%, after hitting a record high of $1,615 earlier this week. "Early tariff resolution removes some of the geographical pressures that had manifested itself in a LME term structure bid," said Alastair Munro, senior base metals strategist at broker Marex. Adding an extra layer of pressure was market speculation that if Washington announces the copper tariffs soon and does not grant a waiver to the metal already on water then this copper could be redirected to the LME-registered warehouses, Munro added. The on-warrant copper stocks in the LME system, currently at the lowest since May, saw a sharp fall since mid-February as traders rushed to swap and redirect supplies to the U.S. 0#MCUSTX-LOC "We expect the imposition of tariffs to end the current copper pricing dislocation, enabling the market to focus on the negative demand impact of US trade policies," BNP Paribas said in a note. BNP Paribas expects copper price to fall to $8,500 during the second quarter and cut its 2025 global copper demand forecast by 0.8%, leaving the market with a 460,000 tons of surplus this year, due to slower demand growth. Among other metals, LME aluminium CMAL3 was down 0.5% at $2,550 a ton after hitting $2,545, its lowest since January 10. Zinc lost 1.6% to $2,853, lead CMPB3 fell 0.8% to $2,022.50, while nickel CMNI3 added 1.1% to $16,415. Tin CMSN3 gained 2.5% to $36,020 after an earthquake in Myanmar. (Reporting by Polina Devitt; Editing by Shailesh Kuber and Maju Samuel) ((polina.devitt@thomsonreuters.com; Reuters Messaging: polina.devitt.thomsonreuters.com@reuters.net)) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))