China: Zhoushan Port became Low-sulfur fuel hub
China has started the trading of the futures of low-sulfur fuel on the Shanghai International Energy Exchange from today.
Prior to the commencement of official trading, the exchange conducted two trials on June 13 and June 21 including daily trading and settlement.
The first day of trading commenced with a benchmark price of RMB2,368 ($335) per ton for monthly delivery contracts from January to June 2021 and the price has so far surged by around 13 % on the Shanghai International Energy Exchange.
The launch of the low-sulfur fuel futures is expected to help China boost its ambition to develop a bunkering hub at Zhoushan Port.
The low-sulfur fuel bunkering market has been prompted by the International Maritime Organization (IMO) ruling which bans ships from using high-sulfur fuel from January this year unless equipped with scrubbers.