FINANCIAL NEWS: 1ST DELIVERY OF THE SHFE’S BITUMEN FUTURES COMPLETED

Updated on Feb 19,2014

2014-02-19

By Gao Guohua

On February 18, the first contract BU1402 of bitumen futures of the Shanghai Futures Exchange (SHFE) entered into delivery with the total delivery volume of 26,660 tons and the delivery amount of RMB117 million (on a single side), reaching the delivery rate of 0.08%. After the delivery, BU1402 contract will be delisted from the market. Delivery is an important mechanism to realize the connection between futures prices and spot prices, and it is also one of the key links testing the successful operation of futures products.

It is learnt that the buyers and sellers during the delivery of BU1402 contract involved bitumen enterprises and bitumen trading enterprises in Zhejiang Province and Shandong Provinces. On January 7, the first batch of SK bitumen was put in storage at the certified delivery warehouse in Ningbo, Zhejiang Province, and it passed the quality inspection and produced the warehouse receipt with the total volume of 5,700 tons. During the process of producing the warehouse receipt, the SHFE attached great importance to the delivery, and cooperated with the three certified quality inspection institutions, in a bid to strictly control the bitumen quality. Since December of 2013, the SHFE has joined hands with National Center for Roads and Bridges Quality Supervision and Inspection in spot checking the quality of 7 registered brands, so as to make sure that they meet the relevant regulations in the SHFE Provisions on Managing Registered Bitumen Goods.