SHFE vs LME physical arbitrage 13/06: Copper, aluminium, zinc, nickel

Arbitrage for copper, aluminium, zinc and nickel imported into China on Thursday June 14*

June 14, 2018

By Gladdy Chu

Copper
-$153.09 (-980.61 yuan)

Aluminium
-$510.70 (-3271.15 yuan)

Zinc
-$66.91 (-428.58 yuan)

Nickel
-$83.50 (-534.85 yuan)

* 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. In March 2016, Metal Bulletin revamped its calculation to more accurately reflect arbitrage windows for physical trading. 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.