Shanghai Petroleum Exchange Ltd., a Shanghai-based market for fuel exchanges, said it will launch China's first LNG (liquified natural gas) and LPG (liquified petroleum gas) spot trading system in December.
Analysts say spot trading can help improve the efficiency and flexibility of LNG and LPG supply and purchase, relieving fuel shortages in China.
In each round of bidding, a buyer can add a price increase of less than 50 yuan on the floor price of the goods.
The buyer who offers the highest price will get the goods. When different buyers offer the same price, the first to make the bid will get the goods, according to a spokesman with the market.
Shanghai Petroleum Exchange Ltd is teaching traders how to use the system. The market will charge a 0.2 percent fee for each transaction, the spokesman said.
In the beginning, most traders in the market were expected to be smaller private companies, the spokesman said.
