PRICING NOTICE: Correction to base metals arbitrage calculations

Fastmarkets has made corrections to its daily calculations of nickel and copper physical metal arbitrage into China, after input errors led to inaccurate figures being published.

From August 3 to August 17, Fastmarkets published its nickel import arbitrage, $/tonne and nickel import arbitrage, yuan/tonne calculations based on a bonded warehouse nickel premium of $110 per tonne.

They should in fact have been based on a premium of $115 per tonne, the level of Fastmarkets’ nickel min 99.8% full plate premium, in-whs Shanghai, $/tonne assessment during that time period.

Exact detail of the corrected prices below:

August 3 previously published prices: -2,560.23 yuan, -$366.04
August 3 corrected prices: – 2,600.54 yuan, -$371.80

August 4 previously published prices: -3,289.17 yuan, -$469.92
August 4 corrected prices: – 3,329.51 yuan, -$475.68

August 5 previously published prices: -2,832.93 yuan, -$406.55
August 5 corrected prices: – 2,873.09 yuan, -$412.31

August 6 previously published prices: -2,986.31 yuan, -$429.23
August 6 corrected prices: – 3,026.41 yuan, -$435.00

August 7 previously published prices: -2,809.08 yuan, -$402.63
August 7 corrected prices: – 2,849.29 yuan, -$408.39

August 10 previously published prices: -3,124.35 yuan, -$447.40
August 10 corrected prices: – 3,164.60 yuan, -$453.16

August 11 previously published prices: -3,246.35 yuan, -$465.61
August 11 corrected prices: – 3,286.53 yuan, -$471.37

August 12 previously published prices: -2,920.71 yuan, -$419.29
August 12 corrected prices: – 2,960.85 yuan, -$425.06

August 13 previously published prices: -3,155.43 yuan, -$453.61
August 13 corrected prices: – 3,195.52 yuan, -$459.37

August 14 previously published prices: -2,208.68 yuan, -$317.39
August 14 corrected prices: – 2,248.78 yuan, -$323.16

August 17 previously published prices: -2,541.08 yuan, -$365.45
August 17 corrected prices: -2,581.15 yuan, -$371.21

Secondly, the following copper arbitrage prices were incorrect due to an input error on Wednesday August 19.

Fastmarkets’ copper import arbitrage, $/tonne was published at -$64.47 per tonne when it should have been -$62.21 per tonne. 

The copper import arbitrage, yuan/tonne was published at -447.16 yuan per tonne when it should have been -431.49 yuan per tonne.

Fastmarkets’ pricing database, MInD, has been updated to reflect these corrections.

For more information, or to provide feedback on this correction notice, or if you would like to contribute to the price discovery process, please contact Karen Ng by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Karen Ng – Base Metals Arbitrage’

To see all Fastmarkets’ pricing methodology and specification documents, go to https://www.metalbulletin.com/prices/pricing-methodology.html.

What to read next
After a consultation, Fastmarkets is increasing the publication frequency of its non-exchange-deliverable equivalent-grade (EQ) copper cathode premium, CIF Shanghai, from once a week to twice a week.
New plans to introduce block trades for bilaterally negotiated transactions on the London Metal Exchange are aimed at enhancing liquidity and transparency without harming the exchange’s core physical user base, chief executive officer Matthew Chamberlain told Fastmarkets.
The London Metal Exchange has unveiled a series of proposals which, if successful, could accomplish what it failed to achieve close to a decade ago: bringing the investment community into the fold.
The primary aluminium premium for duty-unpaid units in Rotterdam edged higher in the week to Tuesday September 3, while the wider European market found continued support from high replacement costs and tight nearby inventories despite slow consumer demand.
Market participants are converging on Bali in Indonesia for the Fastmarkets International Critical Minerals & Metals Summit (ICMMS) on September 5 and 6, so ahead of the event, we capture the main themes facing the global nickel market.
Fastmarkets has amended the MB-NI-0256 nickel low-carbon briquette premium, cif global to include all shapes of exchange deliverable Class 1 nickel metal.