Aluminium premiums in China rise as arb opens

Aluminium premiums in China have risen with the arbitrage window between the Shanghai and London markets opening up.

Shanghai cif aluminium premium is at $245-265 per tonne, up from $220-250 per tonne.
Metal Bulletin’s Shanghai Futures Exchange versus London Metal Exchange cash arbitrage was at $236 per tonne and three-month arbitrage was at $206 per tonne on Tuesday December 3 compared with $227 and $199 respectively on Friday November 29.

“Premiums in Shanghai have increase mainly due to arbitrage and not demand,” a South Korean trader said adding that the Korean market has now become tight for...


Shivani Singh

December 04, 2013

04:01 GMT