Amendment to Fastmarkets’ copper arbitrage calculation on July 15

The Shanghai Futures Exchange copper price used in Fastmarkets’ base metals arbitrage calculation on Friday July 15 has been amended due to an unprecedented market change.

Fastmarkets uses the closing prices for copper, aluminium, zinc and nickel on the SHFE front-month at 3pm Shanghai time in its daily base metals calculations.

On July 15 – the final trading day of the July contract – the price of the SHFE July copper contract flipped from down 5% to up by more than 5% in less than an hour. The closing price for the 2207 contract was 58,760 yuan per tonne.

Using this closing price in the calculation of the would generate to a significant arbitrage gain, which would be at odds with the current market outlook – one characterized by lackluster interest in importing copper cathodes. The arbitrage window remains closed for many of the major market participants that Fastmarkets speaks to during the day’s pricing window.

Editorial judgment has been applied to use the closing price for the SHFE August copper contract on the day in the arbitrage calculation.

The two affected prices are:
MB-CU-0362 Copper import arbitrage, yuan/tonne – which was published at -392.68 yuan per tonne.
MB-CU-0361 Copper import arbitrage, $/tonne – which was published at -$57.89 per tonne.

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Julian Luk by email at: pricing@fastmarkets.com. Please add the subject heading “FAO Julian Luk re: copper arbitrage.”

What to read next
The publication of Fastmarkets’ MB-CO-0004 cobalt alloy grade, in-whs Rotterdam and MB-CO-0005 cobalt standard grade, in-whs Rotterdam assessments for Friday July 12 were delayed because of a technical error. Fastmarkets’ pricing database has been updated.
Feedback was received during the consultation period of an immaterial nature that would not impact the result of price assessments. Therefore, while no material changes will be made to the methodologies at this stage, clarification indicating that the Effective List price treats changes in annually established discounts during the year as changes in the price. […]
Fastmarkets is inviting feedback from the industry on the pricing methodology for European Packaging Paper and Board as part of its announced annual methodology review process. This consultation, which is open until August 31, 2024 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization […]
In the methodology price specifications, the shorter names PIX Testliner GCC and PIX Fluting GCC will be used instead of PIX Containerboard Testliner Delivered GCC USD/tonne and PIX Containerboard Fluting Delivered GCC USD/tonne. No other changes have been made to the index methodology. For comments and queries, please email hello.foex@fastmarkets.com, indicating “PIX Packaging GCC” in […]
The US government will impose tariffs on steel and aluminium shipped from Mexico that were made elsewhere, in a bid to curb trans-shipment and excess production, the White House said in a statement on Wednesday July 10, a move widely applauded by the pair of metals industries
Norway-based aluminium producer Hydro and German car manufacturer Porsche signed a long-term agreement on Tuesday July 9 for supply of low-carbon aluminium to further decarbonize the supply chain of Porsche’s sports cars. The agreement follows the letter of intent signed in April