Case: LME-SHFE Dislocation
A temporary policy and logistics mismatch widened LME-SHFE basis, creating selective arbitrage opportunities.
Key Takeaways
- Policy friction can slow arbitrage closure.
- Basis dislocations are often multi-factor, not purely directional.
- Execution feasibility matters as much as headline spread size.
References
Last reviewed: 2026-03-21