The Shanghai-based exchange will carry out its test from the start of next week. File Image / Pixabay
The Shangai International Energy Exchange (INE) plans to carry out test of very low sulfur fuel oil futures (VLSFO) trading from next month, the company said Wednesday.
The test will be held from June 1 to 12, the company said in a note to customers on its website.
The contract will be for 10 mt lots with physical settlement, denominated in RMB.
Prices will not be allowed to move more than 13% in either direction beyond the previous day's settle, the company said.
China has applied a long-awaited rebate on value added tax on fuel oil from February this year, incentivising domestic refiners to produce very low sulfur fuel oil in large quantities.