PRICING NOTICE: Correction to SHFE vs LME physical copper arbitrage 16/10

Fastmarkets’ Shanghai-London physical arbitrage calculation for copper was published incorrectly on Tuesday October 16 due to an error in inputting the data.

The copper import arbitrage, which tracks the physical import arbitrage into the Shanghai market, was initially published as -$122.48 per tonne/-850.23 yuan per tonne.

It has now been corrected -$118.42 per tonne/-822.04 yuan per tonne.

Fastmarkets’ price book and database have been updated to reflect this correction.

If you have any questions on this correction, please contact Archie Hunter, Fastmarkets base metals editor Europe.

Fastmarkets 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, Fastmarkets improved its calculation to more accurately reflect arbitrage windows for physical trading. In addition, Fastmarkets has adopted China’s latest announced VAT of 16% to its arbitrage calculation, effective May 2, 2018. Also, on August 28, 2018, Fastmarkets 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 Fastmarkets price book.

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