The Aoshan Oil Depot of Sinochem Xingzhong Oil Staging (Zhoushan) Co in Zhoushan [Photo/ zj.zjol.com]
A warehouse receipt for the futures of 2,000-metric-ton 380CST bonded bunker fuel was issued by the Sinochem Xingzhong Oil Staging (Zhoushan) Co on Nov 14, marking the start of China's first business of 380CST bonded bunker fuel futures.
The bunker fuel was purchased by PetroChina International (Hong Kong) and stored at the Aoshan Oil Depot of Sinochem Xingzhong.
Since the 380CST bonded bunker fuel futures went on the market at the Shanghai Futures Exchange (SFE) this July, all the three warehouses designated by SFE for fuel delivery are located in Zhoushan.
The 380CST bonded bunker fuel has become the main fuel for ocean transport vessels in recent years. China, however, imports most of its bonded fuel from overseas and lacks the related financial derivative instruments to control the price risk.
With the 380CST bonded bunker fuel futures business launched in China, domestic companies are able to conduct hedging transactions within the nation to reduce investment loss, instead of having to go abroad or rely on a middleman, according to Xiao Bin, deputy director of the business department of Sinochem Xingzhong (Zhoushan).
"As the China (Zhejiang) Pilot Free Trade Zone is committed to building itself into a bunkering hub of Northeast Asia, the 380CST bonded bunker fuel futures business helps the nation develop a benchmark against which the bunker fuels of Northeast Asia are priced," said Xiao.