China to launch low-sulfur fuel oil futures from June 22
China will begin the trading of the futures of low-sulfur fuel on the Shanghai International Energy Exchange from June 22.
The first day of trading is expected to see a batch of contracts for monthly deliveries from January to June 2021, with a benchmark price of 2,368 yuan (334.9 U.S. dollars) per tonne.
The trading center conducted two drills on the market trading of the futures on June 13 and 21, respectively, which included the daily trading and settlement. The exercises found the overall process smooth and in line with the expectations.
During the trial trading on Sunday, the daily turnover involving 187,874 transactions reached 4.93 billion yuan.
Low-sulfur oil is an important fuel for maritime transport. The launch of the futures will allow overseas investors to access the price signals, manage risks and advance a steady operation of the sector.