Change to Fastmarkets’ base metals arbitrage calculation on August 25

Fastmarkets used the London Metal Exchange base metals prices at 08:59 GMT for the arbitrage calculations on Thursday August 25, because there was no data available at 08:00 GMT due to a system error.

The arbitrage calculator is published every day in line with the LME’s working calendar. For each day component parts are gathered as follows, as per our methodology:

1) Fastmarkets’ cif or in-warehouse premiums for copper, aluminium, zinc and nickel.

2) Close prices for copper, aluminium, zinc and nickel on the LME’s three-month select at 3pm Shanghai time.

3) Close prices for copper, aluminium, zinc and nickel on the Shanghai Futures Exchange front-month at 3pm Shanghai time.

4) Forex rate from the website of the People’s Bank of China at or around 3pm Shanghai time.

5) Spot premium/discount for each metal (copper, aluminium, zinc and nickel) from one local metals website in China; Fastmarkets uses the average value for each in the final calculation.

For Thursday’s publication, no price data was available for 3pm Shanghai time/8am London time for base metals prices, so the earliest price available (8:59 London time) was used in the calculation.

The affected prices:

MB-CU-0362 Copper import arbitrage, yuan/tonne
MB-CU-0361 Copper import arbitrage, $/tonne
MB-AL-0290 Aluminium import arbitrage, yuan/tonne
MB-AL-0289 Aluminium import arbitrage, $/tonne
MB-NI-0107 Nickel import arbitrage, yuan/tonne
MB-NI-0106 Nickel import arbitrage, $/tonne
MB-ZN-0084 Zinc import arbitrage, yuan/tonne
MB-ZN-0083 Zinc import arbitrage, $/tonne

For more information or to provide feedback on the delayed publication of these prices, or if you would like to provide price information by becoming a data submitter, please contact Sally Zhang by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Sally Zhang re base metals arbitrage.’

To see all Fastmarkets’ pricing methodology and specification documents go to https://www.fastmarkets.com/about-us/methodology.

What to read next
Following an initial consultation with the market and a review of the typical data sets that have been collected over recent months, Fastmarkets is proposing changes to the specifications of the index for MB-IRO-0009 iron ore 65% Fe Brazil-origin fines, cfr Qingdao, by raising the silica base specification to 2.7% from 2.2%, as well as an […]
The corrections are as follows: AG-BRY-0004 Barley Feed barley FOB Argentina $/mt Incorrect prices: August $119.00 per tonne Corrected to: August $219.00 per tonne Fastmarkets’ pricing database has been updated to reflect this change. These prices are part of the Fastmarkets Ags Grains package. For more information or to provide feedback on this correction notice or […]
This price is a part of the Fastmarkets scrap package. For more information on our North America Ferrous Scrap methodology and specifications please click here. To get in touch about access to this price assessment, please contact customer.success@fastmarkets.com.
This consultation was done as an adhoc methodology review process, aiming to better reflect the physical market under indexation, considering its reduced liquidity linked to the combination of seasonal demand patterns and the implementation of cross-border import tariffs between the US and China. No feedback was received during the consultation period and therefore Fastmarkets will […]
Full details of the prices covered by this consultation can be found here: https://www.fastmarkets.com/insights/open-consultation-on-annual-methodology-review-for-global-pulp-pricing-notice/ During the consultation, Fastmarkets requested comments on whether current discount levels for US market pulp have grown too high and invited open-ended feedback on potential remedies moving forward. Feedback from the industry was mixed. Potential remedies suggested by the industry included […]
Fastmarkets has corrected the rationale for its MB-CO-0021 cobalt hydroxide payable indicator, min 30% Co, cif China, % payable of Fastmarkets’ standard-grade cobalt price (low-end), which was published incorrectly on Wednesday July 2 due to a reporter error.