27.05.2015 - Aluminum market eyes SHFE, LME arbitrage as support for premiums
Some traders in Asia are closely monitoring the spread between Shanghai Futures Exchange and London Metal Exchange aluminum contract prices, as a wider spread may see more of the metal head to China. Front-month SHFE June aluminum traded at Yuan 13,150-Yuan 13,160 ($2,152-$2,153)/mt Tuesday, while the most recent LME settlement on May 22 was $1,726/mt. Platts assessed spot Chinese import premium for Western grade aluminum at $150-$200/mt Monday. On the basis of LME at $1,726/mt, the $175/mt import premium, port handling charges of Yuan 100/mt and China's value added tax of 17%, the Chinese import price is equivalent to Yuan 13,689/mt -- higher than the traded level for SHFE June aluminum contract, Platts calculation shows.........................................Full Article: Source
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