Fastmarkets calculates the physical arbitrage for imports into China daily by using the Shanghai Futures Exchange front-month and London Metal Exchange three-month prices at 3pm Shanghai time, taking into account value-added tax (VAT) and import duties (where applicable), physical premiums and exchange rates at the time of the comparison.
Also on April 1, 2019, Fastmarkets adopted China's latest announced VAT rate of 13% for its arbitrage calculation. For more details on the formula, please read this pricing notice.
If you have any comments on the discontinuation of the daily publication of the SHFE vs LME physical arbitrage, please contact Ellie Wang by email at: firstname.lastname@example.org. Please add the subject heading “FAO: Ellie Wang, re: Discontinuation of daily publication of SHFE vs LME physical arbitrage”.
To see all Fastmarkets’ pricing methodology and specification documents go to https://www.metalbulletin.com/prices/pricing-methodology.html
Fastmarkets will cease the daily publication of its physical arbitrage for imports of copper, aluminium, zinc and nickel into China from April 1, 2019. The data will still appear in Fastmarkets’ price book on a daily basis as usual, however.