CHINA SECURITIES DAILY: 1ST BATCH OF BITUMEN FUTURES STANDARD WARRANTS GENERATED

Updated on Jan 15,2014

By Guan Ping

On January 13, 1st batch of petroleum products for delivery for bitumen futures trading on the Shanghai Futures Exchange (hereinafter referred to as “the Exchange”) were smoothly loaded into the certified delivery warehouse of Ningbo SK Boldwin Bitumen Storage Co., Ltd. The inspection result by Ningbo Entry & Exit Inspection and Quarantine Technology Center shows that the first batch of warrants amount to 5,700 tons, which marks that bitumen futures delivery is in smooth operation as scheduled.

It is understood that the delivery of the first bitumen futures contract BU1402 will take place in February 2014. At 4 a.m. on January 7, the “BLACK ROAD” bitumen ship from Ulsan, Korea which was loaded with 5,700 tons of “SK” bitumen got alongside the 10# berth at the Zhenhai Port Branch of Ningbo Port Co., Ltd. At 12:30 on the noon, the ship began to unload bitumen to a 6,000-cubic-meter bitumen tank of Ningbo SK Boldwin Bitumen Storage Co., Ltd.. The unloading was completed 36 hours later, which marked that the first delivery and load-in of bitumen futures was done successfully and the bitumen futures delivery was in smooth operation as scheduled. Ningbo Entry & Exit Inspection and Quarantine Technology Center inspected the quality and quantity of bitumen in conformity with futures inspection rules and applicable regulations of the Exchange. On January 13, the Exchange gave the certified delivery warehouse the approval to issue 5,700-ton standard warrants after verifying relevant documents and certificates.

With an approved capacity of 14,400 cubic meters, Ningbo SK Boldwin Bitumen Storage Co., Ltd. is one of the seven certified delivery warehouses for bitumen futures trading on the Exchange. As for the warehouse, although there are large amount of petroleum products from the spot market loaded in and out of the warehouse every day, which is always done in a skilful and effortless manner, it is really the first time to handle futures delivery. Therefore, the delivery warehouse attached great importance to the bitumen futures delivery and ensured its smooth operation.

The market has been in smooth operation since the launch of bitumen futures trading on October 9, 2013. As of January 13, 2014, during the total 69 trading days, the cumulative volume amounts to 6.4486 million lots (two-sided) and the turnover RMB 281.824 billion (two-sided).