THE Shanghai Futures Exchange (ShFE) will list a new fuel oil contract “as soon as possible,” according to a copy of a speech delivered by its chairman yesterday, as the exchange pushes to expand in the competitive commodities derivatives market.

The 380-centistoke bonded fuel oil contract would be China’s second bonded energy futures after the March launch of crude oil futures on the Shanghai International Energy Exchange (INE), a ShFE subsidiary.

Chairman Jiang Yan said the ShFE would also launch pulp futures contracts, while bringing forward the development of natural gas and other refined oil product futures.

It will also accelerate the internationalization of futures products to attract more foreign investors, he said in his speech to the Shanghai Derivatives Market Forum.

A senior ShFE official said the exchange wanted the new fuel oil futures to replace its existing 180-centistoke contract “pretty soon” and that — unlike the current contract — the new one would be open to foreign investors.

The INE’s crude oil contract was the first commodities derivatives contract in China to be opened to foreign investors when it launched in March, while an iron ore contract on the Dalian Commodity Exchange went international May 4.

The ShFE is continuing to make preparations to list options for rubber and copper, Jiang said. The exchange is currently testing out copper options via simulated trading.

The chairman said the ShFE would explore opportunities to set up warehouses in the Hainan free trade zone, which China is aiming to establish by 2020, and overseas, without specifying for which commodities.

(SD-Agencies)