PRICING NOTICE: Correction to SHFE vs LME physical aluminium, zinc arbitrage 10/09

Due to a technical error, Metal Bulletin’s Shanghai-London physical arbitrage calculations for aluminium and zinc were published incorrectly on Monday September 10.

Metal Bulletin has corrected its physical arbitrage figures for aluminium and zinc imported to China on September 10.

The aluminium price was incorrectly published as -$813.21 (-5,591.7 yuan) per tonne. It should have been -$406.63 (-2,796.02 yuan) per tonne.

The zinc price was incorrectly published as $489.66 (3,366.97) per tonne, it should have been $79.02 (543.33 yuan) per tonne.

Metal Bulletin’s price book and database have been updated to reflect this correction.

*Metal Bulletin calculates the physical arbitrage for import into China daily by using SHFE front-month and LME three-month prices at 3pm Shanghai time, taking account of VAT and import duties (where applicable), physical premiums and exchange rates at the time of the comparison. On January 2, 2018, Metal Bulletin improved its calculation to more accurately reflect arbitrage windows for physical trading. In addition, Metal Bulletin has adopted China’s latest announced VAT of 16% to its arbitrage calculation, effective May 2, 2018. For more details on the formula, please read this pricing notice. Also, on August 28, 2018, Metal Bulletin amended its arbitrage calculation and will use the midpoint of the copper, aluminium, zinc and nickel premiums rather than the single number for its LME-SHFE arbitrage calculation. For more details, please read this pricing notice

For details of physical premiums in Shanghai, and other Asian locations, please see the Metal Bulletin price book.

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