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Spot trading of crude oil opens in Tianjin, China
Published on December 20, 2009 by oilprices · 2 CommentsChina has launched its first spot trading system in Tianjin for crude oil and coke, the coal used in steel making. The exchange is part of the effort to transform Tianjin Binhai New Zone into a financial center in northern China.
The newly inaugurated Bohai Commodity Exchange “BOCE” is China’s first joint-stock commodity board. China’s crude and coke consumption is one of the highest in the world. The country has been relying on New York WTI, and Brent crude futures as references or pricing markers for years.
The exchange will help give China control over internal prices by instituting a price cap on bulk commodities. On its first trading day, Friday, the exchange set the benchmark price of crude at 4,360 yuan per tonne, and coke at 1,550 yuan per tonne. The Tianjin based exchange is launching 24-hour spot trading of international crude and coke.
Its electronic trading system is connected with major financial markets around the world and all banking systems in China. The exchange will gradually open spot trading for other goods, like petrochemicals, and metals.
China is the world’s second largest country for base oil consumption, using 7.3 million barrels per day, but currently domestic oil importers still have to trade in prices set by the world’s two major international petroleum exchanges – New York Mercantile Exchange and the International Petroleum Exchange in London.
“The ultimate goal for our bourse is to set up a trading platform to provide transparent prices for commodities, and breed a system that will make the pricing of those products to be traded globally based on local pricing in the long term,” Yan Dongsheng, chairman of the bourse had said.
“There’s no such organized commodities bourse for spot trading in China that we believe will be of interest to many investors,” said Zhao Jun, CEO of Shanghai Youngsun Investment Co, which is among the exchange’s 100 authorised agents providing trading services for investors.
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We need crude oil procedures.Our company is acting as brokers of crude oil.We are having buyers of crude oil who needs crude oil from 4 mimmion barrels per month. We need TTO loaded vessels with new bill of loading not more than seven days old.
Regards
Besingi S.Moke
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We are acting as mandated for crude oil sellers.We can arrange buyer and sellers to make good deal on crude oil.That BLCO from 2 mimmion to 4 million barrels per month.