PRICING NOTICE: Improved arbitrage calculation for copper, aluminium, zinc and nickel [UPDATED]

Metal Bulletin has improved its formula for calculating the daily arbitrage between the Chinese and global metals markets, and started publishing arbitrage figures for copper, zinc, aluminium and nickel from Monday March 7.

The new arbitrage calculation will more accurately reflect import windows for physical trading, with prices on the Shanghai Futures Exchange and the London Metal Exchange as benchmarks. The calculation takes into account factors including Chinese import taxes, VAT, port charges, exchange rates and premiums on a Shanghai cif or an in-warehouse basis. Take copper: the formula consists of two parts: a. SHFE front month contract close + spot premium/discount =...


Linda Lin

March 09, 2016

06:50 GMT