China: Shanghai launches bonded bunker fuel offer price system
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Shanghai Futures Exchange and Shanghai Petroleum and Natural Gas Exchange on Tuesday (20 June) jointly released the “Shanghai Bonded Bunker Offer Price” (Shanghai Quotation), according to China-based press.
The quotation is based on the settlement price of fuel oil futures and low-sulphur fuel oil futures collected from six licensed bonded bunker suppliers.
These suppliers are Sinopec Zhejiang Zhoushan Petroleum Co.,Ltd., China Marine Bunker(Petrochina) Co.Ltd, China Changjiang Bunker (Sinopec) Co,Ltd, PetroChina SIPG Energy Co.,Ltd and Shanghai Fuyuan Fuel Oil Co.,Ltd.
After calculating the weight of the bonded refuelling share in the Shanghai market, the supplier releases the RMB premium and discount quotations for high-sulphur fuel oil and low-sulphur fuel oil in Shanghai on that day.
In 2021 and 2022, the Shanghai Futures Exchange and Zhejiang International Oil and Gas Trading Center jointly launched the last Zhoushan seller’s quotation and buyer’s quotation, which were highly recognised by the market.
Bunker suppliers in Shanghai also expressed their willingness to launch premium and discount quotations in Shanghai.
The quotation mechanism in Shanghai has been optimised according to the regional characteristics of Shanghai, including the simultaneous introduction of premium and discount quotations for high and low sulphur fuel oil, and two quotations at 4 and 6 pm.
In his speech at the forum, Wang Zhiqiang, director of the Energy Department of the Shanghai Municipal Development and Reform Commission, said the development of bonded bunker fuel business was conducive to enhancing China’s competitiveness in the international bonded oil market. He also said Shanghai will speed up the development of the five centres including the Shanghai International Shipping Centre.
In 2022, the bunkering volume of bonded ships across the country reached 21.86 million metric tonnes (mt), and China’s low-sulphur fuel oil production reached 15.5 million mt, a year-on-year increase of 40%.
Related: China officially launches Zhoushan Bonded Fuel Oil Index System with ‘Buyer’s Quotation’
Related: Shanghai issues first batch of bonded bunkering licences to two local players
Related: China: Additional 10 companies awarded bonded bunker fuel licences from Jan to Sept 2022
Related: China: PetroChina SIPG Energy completes first bonded bunker fuel op
Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.
Photo credit: Siyuan Hu on Unsplash
Published: 30 June, 2023
