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MOSCOW (MRC) -- China’s Shanghai
International Energy Exchange (INE) has approved four entities as designated
delivery warehouses for its upcoming low-sulfur fuel oil (LSFO) futures
contract, according to Hydrocarbonprocessing with
reference to the company's statement.
The entities were listed
as Sinochem-Xingzhong Oil Staging (Zhoushan) Co., Ltd., Zhejiang Ocean Oil
Products Warehousing Co.,Ltd., Dading Petroleum Logistics Co.,Ltd. and Yangshan
Shengang International Oil Logistics Co., Ltd.
They will have total
approved storage capacity of 570,000 tonnes and active storage capacity of
320,000 tonnes. The storage fee is 3 yuan per tonne each day.
The LSFO
contract, with sulphur content lower than 0.5%, will debut on June 22, with
foreign investors allowed to participate.
The INE had published rules for
its low sulphur fuel oil contract on Wednesday, stating that it will be traded
at 10 tonnes per lot with a daily price limit of 5% and a minimum trading margin
of 8%.
As MRC reported
earlier, China’s Sinochem Quanzhou Petrochemical successfully started up its
newly constructed naphtha cracker in Quanzhou, Fujian province on 16 May 2020,
setting the company on track to bring its downstream units online by mid of the
year. The cracker has an annual capacity of 1 million tons of
ethylene.
Ethylene and propylene are feedstocks for producing
polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 557,060 tonnes in the first three
month of 2020, up by 7% year on year. High density polyethylene (HDPE) and
linear low density polyethylene (LLDPE) shipments rose because of the increased
capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same
time, PP shipments to the Russian market was 267,630 tonnes in January-March
2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted
for the main decrease in imports. |
