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6 Pages

China stocks, SHFE arbitrage and the copper price

China stocks, SHFE arbitrage and the copper price

Report summary

It is a truth universally acknowledged that the surge in Chinese demand over the past decade has driven the copper price higher but in this Insight we reveal that the Chinese stock cycle plays an important role in movements on the LME. We also explain arbitrage and how all these factors interplay. During the period 2004 to 2012 Chinese consumption grew by 5.2Mt or at an average annual rate of 13%, while demand in the Rest of the World actually contracted.

What's included?

This report includes 1 file(s)

  • China stocks, SHFE arbitrage and the copper price PDF - 502.24 KB 6 Pages, 1 Tables, 5 Figures


This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive Summary
  • Introduction
  • Stocking cycle
  • Arbitrage
  • Conclusions

In this report there are 6 tables or charts, including:

  • Executive Summary
  • Introduction
    • China's share of copper stocks and the copper price
    • China's stocks/demand ratio and the copper price
  • Stocking cycle
    • China stock cycle and net copper imports - (kt)
  • Arbitrage
    • LME to SHFE arbitrage worked example
  • Conclusions
    • China stocks, copper price and SHFE arbitrage
    • SHFE arbitrage and refined copper imports
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