On June 22, low-sulphur fuel oil (LSFO) futures made debut at China's Shanghai International Energy Exchange (INE). The listing prices for the LSFO futures contracts LU2101, LU2102, LU2103, LU2104, LU2105 and LU2106 will be RMB2 368/metric ton, according to the circular issued by INE on June 19.
The new futures contract will be traded at 10 tonnes per lot. The trading margin for each contract is set as 15% of the contract value. The price limit for each contract is set as ±13% from the settlement price of the previous trading day, and the price limit on the first trading day will be twice the price limit. The transaction fee is RMB2 per lot and a trading order is set at a maximum of 500 lots.
The delivery unit of low sulfur fuel oil futures contract is 10 metric tons. The delivery quantity shall be integral multiple(s) of the delivery unit. The delivery fee will be waived from the date of listing to January 8, 2021. During the initial listing phase, no premium or discount will be prescribed for low sulfur fuel oil, which meets or exceeds the quality standards of low sulfur marine fuel oil. Specific rates of premium and discount, delivery grades and quality specifications will be separately prescribed and adjusted by INE based on market movements.