Asia-North Europe forward rate contracts on Shanghai’s CoFIF has traded at a
discount of over 50% to the spot rate for over a month and last week’s SCFI drop
triggered a further 4% decline in the CoFIF rates on 26 February. The drop has
been widely anticipated after CoFIF’s April contracts edged up 4% on 19
February, the first trading day after the Chinese New Year holidays but quickly
qave up the gains the next day before flat-lining for rest of the week on
relatively low turnover with traders