PRICING NOTICE: Correction to SHFE vs LME physical nickel arbitrage 20/07, 23/07

On Friday July 20 and Monday July 23, Metal Bulletin published an incorrect figure for the Shanghai-London physical arbitrage calculation for nickel.

On Friday July 20, the price was published and inputted into the price book as -$64.82 per tonne (-440.15 yuan). It should have been -$183.14 per tonne (-1,243.53 yuan).

On Monday July 23, the price was published as -$170.55 per tonne (-1,158.18 yuan) but not inputted to the price book. It should have been -$288.87 per tonne (-1,961.68 yuan).

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.

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

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