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China officially launches Zhoushan Bonded Fuel Oil Index System with ‘Buyer’s Quotation’

22 Jun 2022

The following article published by Manifold Times on 22 June was sourced from China’s domestic market through a local correspondent. An online translation service was used in the production of the current editorial piece:

Zhejiang International Oil and Gas Trading Center (Zhejiang Oil Center) and Shanghai Futures Exchange have jointly released a buyer’s quotation system for low sulphur bonded bunker fuel from Zhoushan port, according to the center on Tuesday (21 June). 

This marked the beginning of Zhoushan’s bonded fuel oil index system.

The new quotation system was launched at the 2022 Fuel Oil Industry Summit in Shanghai on the same day. 

The “Buyer Quotation for China Zhoushan Low Sulphur Fuel Oil Bonded Ships” system based on China’s RMB currency considers the buyer’s price, seller’s quotation, weather index, comprehensive storage price and available commercial storage capacity. 

Initial participants of the buyer’s quotation system consists of seven international shipowners including bulk commodities, dry bulk cargo, and ocean fishing firms from Singapore, Mauritius and other regions.

The price benchmark is the future price of INE low-sulphur fuel oil, which is released at 4 pm on each trading day.

The release of the buyer’s quotation system will help to further improve the Zhoushan price formation mechanism, enhance the authority of Zhoushan’s prices, and help enhance the international influence of the Zhejiang Free Trade Zone’s bonded fuel oil market, said the center. 

In 2021, the bonded bunker sale volume of Zhoushan port exceeded 5.52 million metric tonnes, ranking first in China and the sixth largest in the world.

Zhejiang Oil Center said it was committed to building the index system which will improve local bonded fuel oil supporting services while building Zhoushan as a bonded fuel oil supply centre in Northeast Asia.

On 21 June 2021, Zhejiang Oil Center and Shanghai Futures Exchange jointly released the first RMB quotation mechanism based on the future domestic market price – China Zhoushan Low Sulfur Fuel Oil Bonded Ship Supply Quotation (Zhoushan Price).

After the release of Zhoushan Price, Zhejiang Oil Center, with the support of the Shanghai Futures Exchange and Zhejiang Free Trade Zone, further cooperated with relevant government departments and the main market players released the Anchorage Oil Supply Weather Index, Anchorage Oil Supply Weather Index, Zhoushan Oil Product Storage Comprehensive Price and Zhoushan Oil Product Storage Available Commercial Storage Capacity

Related: China: Zhoushan port digitalises bunker fuel, oil product storage availability info
Related: China: Zhejiang Oil Center launches price information service for the storage of oil products
Related: Zhoushan and Ningbo authorities update bonded bunkering procedure document for shipowners
Related: Zhoushan port launches bunkering operations at Qushan temporary anchorage

 

Photo credit: Manifold Times
Published: 22 June, 2022

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