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’ AG-PLM-0019 refined bleached deodorised (RBD) palm olein, cfr South China assessment for Thursday July 24 was delayed due to a reporter error. Fastmarkets’ pricing database has been updated.
US export controls on recycled copper would have unintended consequences that could weaken the country’s domestic recycling and manufacturing ecosystems, the president of the Recycled Materials Association (ReMA) said.
Fastmarkets has launched a MB-STE-0935 Steel reinforcing bar (rebar), differential to shredded auto scrap Chicago, fob mill US, $/gross ton to complement its existing suite of steelmaking raw materials to finished product differentials on Wednesday July 23. This strategic launch is designed to offer the market a single reference price denoting the differential between steel […]
The following prices were affected:MB-BI-0001 bismuth 99.99% Bi min, in-whs Rotterdam, $ per lbMB-CD-0001 cadmium 99.95% min, cif global ports, cents per lbMB-CD-0002 cadmium 99.99% min, cif global ports, cents per lb. These prices are part of Fastmarkets’ minor metals package. For more information, or to provide feedback on the delayed publication of these prices, or if you […]
After a consultation period from June 20 to July 18, Fastmarkets made the decision to discontinue these assessments because the outright prices no longer reflect market conditions, with the market shifting toward payables as the dominant pricing method. The affected prices are:MB-NIO-0003 nickel mixed hydroxide precipitate outright price, cif China, Japan and South Korea, $ per tonneMB-NIO-0005 nickel […]
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 Wednesday July 23 was delayed because of a system error. Fastmarkets’ pricing database has been updated.