Global energy and commodity price reporting agency Argus has launched two price assessments for marine fuels delivered to Zhoushan in east China, following an agreement with the Zhoushan city government. The assessments will provide prices for marine fuels that comply with the tighter sulphur specifications that the International Maritime Organisation (IMO) is introducing from 1 January 2020.
Zhoushan has recently overtaken Shanghai to become China’s largest bunker port, with sales of 3.5mn t in 2018, and the Chinese government is investing heavily to make the port one of the largest bunker hubs in Asia.
The agreement between Argus and the Zhoushan city government will bring further price transparency to the port’s growing marine fuels market.
The new Zhoushan Bunker Indexes (ZBI) for IMO-compliant 0.5pc sulphur fuel oil and 0.1pc sulphur marine gasoil have been launched within a month of the agreement being signed, and seven months ahead of the IMO’s introduction of tighter sulphur specifications for bunker fuel.
Argus has been assessing delivered-to-ship high-sulphur 380cst bunker fuel prices in Zhoushan since December, and now assesses prices for three bunker fuels delivered to the port.
Argus assesses Zhoushan-delivered marine fuels prices based on trades, bids and offers and other market information. The methodology is governed by Argus’ high standards of compliance and is reviewed regularly to ensure that it meets the needs of the bunker market and is in line with industry practice.
The prices are published in the daily Argus Marine Fuels report as outright values assessed in US dollars/metric tonne.
“Argus welcomes the opportunity to provide greater transparency to the port of Zhoushan,” Argus Media chairman and chief executive Adrian Binks said.
“The introduction of these key price assessments reaffirms Argus’ continued commitment to provide suppliers and shipowners with independent, high-quality bunker fuel assessments to capitalise on growing market opportunities through this period of industry transition.”
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