Bitumen futures on China's Shanghai Futures Exchange opened up more than 3 percent on their trading debut Wednesday in brisk volumes, reflecting strong investor interest as the bourse lays the ground for the launch of a crude futures contract.
The most active February contract was up over 3.3 percent in early trade and rose to a high of 4,658 yuan ($761) per ton, versus a base price set at 4,458 yuan per ton.
Rapidly urbanizing China is Asia's largest user of bitumen, also known as asphalt, a heavy tar-like refinery fuel that makes up just under 4 percent of the country's total fuel consumption.
The Shanghai Futures Exchange has said the bitumen futures will also act as a trial run for planned crude oil futures, since both products will require similar clearing, settlement and risk control measures.
The bitumen contract would be restricted to Chinese entities and China-registered wholly foreign-owned enterprises.
The contract has a minimum transaction size of 10 tons per lot with a minimum trade margin of 6 percent of contract value. The daily adjustment limit has been set at 4 percent.
