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Friday, 18 October 19
SINGAPORE'S APEX TO LAUNCH LOW-SULFUR FUEL OIL CONTRACT AHEAD OF NEW SHIPPING RULES - REUTERS
 Singapore-based Asia Pacific Exchange (APEX) will launch a low-sulfur fuel oil (LSFO) futures contract on Friday aimed at helping shipping and energy firms manage price fluctuations as stricter global marine fuel rules kick in from 2020, it said.
New International Maritime Organization (IMO) regulations cutting the allowed sulfur content in shipping fuel to 0.5% from 3.5% in a bid to combat air pollution will apply from Jan. 1 next year.
The new contract aims to help the energy and shipping sectors to hedge risk in the relatively new market for 0.5% LSFO delivered marine fuels, or bunkers, the spokesman said.
“Risk management demand for delivered bunker LSFO prices has become more significant due to factors such as the uncertainty in LSFO specifications, and the disconnection between cargo and delivered prices,” said the spokesman.
The cash-settled, U.S. dollar-denominated LSFO futures contract will be for 10 tonnes of fuel oil, and will use the Argus Bunker Index (ABI) Singapore LSFO 0.5% as the settlement price, according to APEX and Argus company websites.
The Argus LSFO 0.5% index represents the price of bunker fuel delivered within 4-12 days of the trade date, for volumes between 500-3,000 tonnes, with viscosity of less than 380-centistoke (cst) and sulfur content below 0.5%.
The LSFO futures contract is APEX’s second fuel oil contract and follows the 380-cst high-sulfur fuel oil (HSFO) contracts it launched in April.
“Since the launch of the HSFO contract, we have been closely monitoring the demand and pain points of the market, and will continuously design new products and improve our services based on market’s feedback,” the spokesman said.
The new contract is expected to help users cope with the change in marine fuel regulation, he added.
Since its launch the APEX 380-cst HSFO contract has seen average daily trading volume of some 23,000 lots, representing 230,000 tonnes of fuel oil, and an average daily open interest of around 3,600 lots, or 36,000 tonnes, the spokesman said.
Source: Reuters
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
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- Cement Manufacturers Association - India
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- Economic Council, Georgia
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- Electricity Authority, New Zealand
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- SMC Global Power, Philippines
- Straits Asia Resources Limited - Singapore
- Rio Tinto Coal - Australia
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- Orica Mining Services - Indonesia
- Heidelberg Cement - Germany
- Cigading International Bulk Terminal - Indonesia
- Thai Mozambique Logistica
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- International Coal Ventures Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Link Ltd, New Zealand
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- Wood Mackenzie - Singapore
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- Ministry of Mines - Canada
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- Merrill Lynch Commodities Europe
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- Sical Logistics Limited - India
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- Sarangani Energy Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
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- Port Waratah Coal Services - Australia
- Indian Energy Exchange, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Petrochimia International Co. Ltd.- Taiwan
- Planning Commission, India
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- Power Finance Corporation Ltd., India
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- Salva Resources Pvt Ltd - India
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- Wilmar Investment Holdings
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- Leighton Contractors Pty Ltd - Australia
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- Mercator Lines Limited - India
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- Independent Power Producers Association of India
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- Bukit Baiduri Energy - Indonesia
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- Africa Commodities Group - South Africa
- Toyota Tsusho Corporation, Japan
- Parliament of New Zealand
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- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- Antam Resourcindo - Indonesia
- McConnell Dowell - Australia
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- South Luzon Thermal Energy Corporation
- IHS Mccloskey Coal Group - USA
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- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Deloitte Consulting - India
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- Pendopo Energi Batubara - Indonesia
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- Posco Energy - South Korea
- Energy Development Corp, Philippines
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- Chamber of Mines of South Africa
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- Edison Trading Spa - Italy
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- Singapore Mercantile Exchange
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- GMR Energy Limited - India
- Minerals Council of Australia
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- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- Ambuja Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Vizag Seaport Private Limited - India
- India Bulls Power Limited - India
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- GVK Power & Infra Limited - India
- The Treasury - Australian Government
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- PowerSource Philippines DevCo
- Riau Bara Harum - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Australian Commodity Traders Exchange
- Rashtriya Ispat Nigam Limited - India
- Commonwealth Bank - Australia
- The University of Queensland
- Karbindo Abesyapradhi - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Lanco Infratech Ltd - India
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- PNOC Exploration Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
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- Australian Coal Association
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- Latin American Coal - Colombia
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- Petron Corporation, Philippines
- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- Goldman Sachs - Singapore
- Semirara Mining and Power Corporation, Philippines
- Central Java Power - Indonesia
- European Bulk Services B.V. - Netherlands
- IEA Clean Coal Centre - UK
- CIMB Investment Bank - Malaysia
- Gujarat Sidhee Cement - India
- Price Waterhouse Coopers - Russia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
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- Ministry of Transport, Egypt
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- Sree Jayajothi Cements Limited - India
- Savvy Resources Ltd - HongKong
- Bukit Makmur.PT - Indonesia
- Bangladesh Power Developement Board
- Carbofer General Trading SA - India
- Kapuas Tunggal Persada - Indonesia
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