DZH: 1ST BATCH OF BITUMEN FACTORY WAREHOUSE WARRANTS FOR BITUMEN FUTURES OF THE SHANGHAI FUTURES EXCHANGE GENERATED

Updated on Jan 16,2014

By Fan Linlin, Gu Meiyi

January 16 (DZH AAFN)— 1st batch of standard bitumen factory warehouse warrants for bitumen futures trading on the Shanghai Futures Exchange (hereinafter referred to as “the Exchange) were generated at the certified bitumen factory warehouse of Shandong Jinshi Bitumen Co., Ltd. this Wednesday. 1stbatch of “Jinshi” standard bitumen factory warehouse warrants, which are 5,000 tons in total, mark the official start of the factory warehouse delivery of bitumen futures. Bank of China, Rizhao Branch provides demand guarantee service for 1stbatch of standard factory warehouse standard warrants.

With an approved capacity of 20,000 tons and a daily shipment of 3,000 tons, Shandong Jinshi Bitumen Co., Ltd. is one of the seven certified bitumen factory warehouses for bitumen futures trading on the Exchange. Low in cost, factory warehouse delivery is suitable for commodities that are easy to deteriorate or have high storage cost.

The Exchange says it adopts warehouse delivery and factory warehouse delivery for bitumen complementarily due to its characteristics and meet the delivery demand from traders and producers to the fullest extent by taking into account such factors as regional radiation ability and adequate delivery volume. In addition, factory warehouse delivery saves the cost for transporting the commodities to the certified delivery warehouse and load-in inspection and thus improves the fund efficiency of enterprises.

Owing to its form and solidifying point, there are higher requirements in the transportation and storage of bitumen than in those of ordinary solid and liquid products. The Exchange attaches great importance to factory warehouse delivery of bitumen futures and strengthens product transportation, inspection and storage for quality assurance.

The market has been in smooth operation since the launch of bitumen futures on October 9, 2013. As of January 14, 2014, during the total 69 trading days, the cumulative trading volume amounts to 6.4706 million lots (two-sided) and the turnover RMB 282.777 billion (two-sided).