Shanghai Petroleum Exchange (File Photo)
SHANGHAI, Aug. 19 (Xinhua) -- Shanghai Petroleum Exchange, China's first commodity and futures exchange for oil products, reported robust trade on Friday, its first formal business day.
Friday's transactions of gasoline, which is among the
first products to be traded on the exchange, totaled 72,120 tons and were valued
at 253 million yuan (31.6 million U.S. dollars), the bourse's general manager
Chen Zhenping told Xinhua.
Futures trading was brisk for October and November
and the three biggest deals alone totaled 51,460 tons, 71.4 percent of the
total, he said.
Yet bidding prices were stable on Friday and the
difference between the highest and lowest bids was 60 yuan (7.5 U.S. dollars)per
ton, said Chen.
The exchange started by trading gasoline and will
also trade bitumen, methanol and glycol in the near future. In the long run, it
will launch trading in other petroleum and chemical products including crude and
refined oil and liquefied gas.
The exchange has signed deals with 65 traders, ten
warehouses and two banks.
With a registered capital of 105 million yuan (13
million U.S. dollars), the exchange is a joint venture between Shanghai Jiulian
Group and four domestic petroleum and chemical giants including PetroChina and
Insiders say two overseas oil giants have set up
branches in China to trade on the Shanghai Petroleum Exchange but their
identities have not been disclosed.
With the increasing participation of international
petroleum groups, China is getting more prepared to fix oil prices on its own,
said Ma Weifeng, a researcher at Shanghai-based Tongji University.
In August 2004, fuel oil started to be traded on
Shanghai Futures Exchange (SFE). In 2005, daily trade of fuel oil at SFE was
76,000 tons and increased to 110,000 tons in 2006.
The steady operation of the SFE has shaped up a
price-fixing system featuring changes of supply and demand in China's fuel oil
market, Ma said.
The system will help China's fuel oil spot
transactions adjust prices in accordance with supply and demand on the
international market and avoid risks.
China used to fix spot transactions prices of fuel
oil products according to changes of supply and demand in Singapore's oil