Playbook: Two live corridors, how to work them today
Today's opportunity set
Two corridors are live on the platform with measurable net spreads and verified landed-cost data. Both sit above confidence thresholds that warrant structured RFQ workflows. Below is what the data shows.
- Aluminium Scrap (UBC): Germany → India | Net margin 12.8% (~$260/MT) | Landed cost ~$2,040/MT | Confidence 0.78 | High priority
- Copper Scrap (Millberry): Poland → Turkey | Net margin 5.0% (~$425/MT) | Landed cost ~$8,575/MT | Confidence 0.72 | Indicative
How it plays out: Aluminium UBC corridor
The aluminium UBC Germany-to-India corridor is the stronger signal today. Here is how a user would work it on ArbiTrade, step by step.
Step 1: Spot and sanity-check the costed signal. You log into ArbiTrade and see the UBC corridor flagged. The platform shows a landed cost of ~$2,040/MT in India, with a confidence score of 0.78 based on recent quotes from verified European scrap aggregators and Indian recyclers. You cross-check the landed-cost build: German origin price (~$1,780/MT), logistics and insurance (~$180/MT), Indian import duty and handling (~$80/MT). The math holds.
Step 2: Scope a representative cargo. You decide to test with a 20-foot container: roughly 18 MT of UBC. Gross margin on that volume would be approximately $4,680 (18 MT × $260/MT net spread). This is indicative and assumes no slippage in pricing, FX, or spec.
Step 3: Build a structured RFQ. You use ArbiTrade's RFQ builder to specify: commodity (UBC, ISO 1352 grade), volume (18 MT), origin (Germany), destination (India), timeline (30 days), and quality specs (max 2% contaminant, moisture <5%). The platform auto-populates landed-cost assumptions and margin sensitivity.
Step 4: Route to verified counterparties. ArbiTrade routes your RFQ to pre-vetted European scrap suppliers and Indian recycler networks. You receive three indicative quotes within 48 hours. Two are within 2% of the platform's landed-cost estimate; one is 4% higher (you flag that outlier).
Step 5: Negotiate and structure. You engage with the two credible counterparties. Supplier A offers $1,785/MT ex-works Germany, FOB Hamburg; Buyer B commits to $2,045/MT CIF Mumbai, 30-day payment terms. You negotiate transport and insurance separately with a verified freight forwarder on the platform. Total landed cost lands at $2,038/MT—$2 below the costed signal.
Step 6: Advance to close. Once counterparties are aligned, ArbiTrade coordinates documentation (packing list, quality cert, bill of lading), trade-finance options (if needed), and settlement routing. You do not take title; ArbiTrade coordinates the flow.
What could break it
- FX volatility. EUR/INR moves 3% intra-month; your margin compresses by ~$60/MT. Hedge via forward contracts or adjust RFQ timing.
- Duty or inspection regime change. India's import duty on scrap can shift; a 2% increase eats ~$40/MT of margin. Monitor trade policy calendars.
- Spec drift or rejection. Contaminant levels exceed 2% on arrival; buyer rejects or demands rework. Tighten QC pre-shipment; cost ~$20/MT.
- Demand softening. Indian recycler demand drops mid-transit; buyer walks or renegotiates downward. Lock in forward offtake before committing to purchase.
Copper millberry: a secondary play
The Poland-to-Turkey copper corridor shows 5.0% net margin (~$425/MT on an $8,575 landed cost). The workflow is identical: spot, cost, RFQ, route, negotiate, close. Confidence is 0.72, so treat it as indicative until you receive live counterparty quotes. Typical container volume (8–10 MT) would yield ~$3,400–$4,250 gross margin, again indicative and subject to all the risks above.
Next steps
Log into ArbiTrade, select one corridor, and build your first RFQ. The platform will route it to verified counterparties and show you real-time landed-cost adjustments as quotes come in. No commitment until you say so. All numbers here are illustrative; your actual margin depends on live market data, execution, and risk management.
See it on the platform
ArbiTrade costs every corridor net of freight, duties, inspection, and FX, then routes structured RFQs to verified counterparties. Create a free account to explore live corridors and dispatch your first RFQ.
ArbiTrade provides market intelligence and coordination only. It does not execute trades, hold funds, act as a counterparty, or guarantee pricing, execution, or profit. This article is general commentary, not investment, legal, or trading advice. Conduct independent diligence before transacting.
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