SHFE vs LME physical arbitrage 05/11: Copper, aluminium, zinc, nickel

Arbitrage for copper, aluminium, zinc and nickel imported into China on Monday November 05*

Copper
-$205.55 (-1,425.89 yuan)

Aluminium
-$444.44 (-3,082.97 yuan)

Zinc
-$50.76 (-352.08 yuan)

Nickel
$570.66 (3,958.54 yuan)

*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. For more details on the formula, please read this pricing notice.

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 MB price book.

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