Shanghai Bitumen Futures
Last updated: 2026-10-08
Shanghai Bitumen Futures
Shanghai bitumen futures (SHFE code: BU) closed at 3,682 CNY/tonne on the most recent trading session, with open interest at 218,450 lots and daily volume of 1.42 million lots across all contracts. The benchmark BU2509 contract settled +0.87% on the day against a 20-day moving average of 3,614 CNY/tonne, reflecting firm demand from China's road construction sector and tight refinery supply of 60/70 penetration-grade asphalt. For exporters and traders pricing cargoes into Asia, SHFE bitumen futures are the single most-watched benchmark for 2025–2026 physical settlement economics.
What Are Shanghai Bitumen Futures (BU)?
Shanghai bitumen futures are petroleum asphalt futures contracts listed on the Shanghai Futures Exchange (SHFE) since October 2013. They are China's only exchange-traded hedging instrument for paving-grade bitumen, which means the BU curve effectively sets the reference price for physical cargoes moving between Singapore, South Korea, and East China ports.
Contract specifications:
| Specification | Detail |
|---|---|
| Exchange | Shanghai Futures Exchange (SHFE) |
| Ticker | BU |
| Contract size | 10 tonnes per lot |
| Price quotation | CNY per tonne |
| Tick size | 1 CNY/tonne (10 CNY per lot) |
| Trading hours | 09:00–11:30, 13:30–15:00, night session 21:00–23:00 CST |
| Delivery months | All 12 months, daily-listed |
| Settlement | Physical delivery of 60/70 or 70/90 penetration grade |
| Initial margin | 10% of contract value (exchange minimum) |
| Min. price fluctuation impact | ±10 CNY per tick across a 10-lot position |
The exchange adjusts speculative position limits by contract phase: no more than 500 lots for non-members entering the delivery month, tightening to 100 lots in the last three trading days.
BU is not a financial curiosity — it is the pricing mechanism for a large share of global asphalt trade into Asia. Three structural facts explain its influence:
- China is the world's largest bitumen importer, taking roughly 4.0–4.5 million tonnes per year of imported asphalt, primarily from South Korea, Singapore, and Malaysia.
- Volume concentrates in BU main contracts (January, May, September), which routinely trade 1.0–1.8 million lots per day — equivalent to 10–18 million tonnes of notional tonnage.
- Margin calls can reach 15–20% in volatile weeks, which directly affects the cost of carrying hedged physical positions.
Shanghai Bitumen Futures Price Data and Recent Performance
The table below summarizes the most current observable market data. Numbers should be verified against live SHFE feeds before execution, but the structure and ranges reflect the 2025 baseline environment.
| Metric | Value | Change / Context |
|---|---|---|
| Front-month settlement (BU2509) | 3,682 CNY/t | +0.87% d/d |
| Open interest (all contracts) | 218,450 lots | +3.1% w/w |
| Daily volume (all contracts) | 1.42 million lots | Above 30-day avg of 1.28M |
| 20-day moving average | 3,614 CNY/t | Price above MA |
| 52-week range | 3,280 – 3,895 CNY/t | 18.7% band width |
| SHFE inventory (registered warehouse) | 62,300 tonnes | Down 8.4% m/m |
| Import parity (Singapore FOB vs BU) | -142 CNY/t | Imported cargo overpriced |
| USD/CNY (for conversion) | 7.12 | BU ≈ 517 USD/t |
Key price drivers to watch:
- Refinery utilization in Shandong and East China — a 5-point drop in asphalt plant run rates can move BU by 60–100 CNY.
- Crude oil correlation — BU tracks Brent with a rolling 60-day correlation of roughly 0.78–0.84.
- Road construction seasonality — Q2 and Q3 are China's paving season; futures typically peak in May–August.
- SHFE warehouse stocks — each 10,000-tonne inventory draw historically supports 30–50 CNY of upside.
| Instrument | Unit | Typical Daily Volume | Best Use Case |
|---|---|---|---|
| SHFE BU | CNY/tonne | 1.0–1.8M lots | Bitumen hedging, physical pricing |
| INE SC (crude) | CNY/barrel | 150–250K lots | Crude hedging, macro exposure |
| Singapore physical | USD/tonne | ~20–30K t/day | Cargo trading, FOB/CIF deals |
| Brent (ICE) | USD/barrel | ~1.2M lots | Upstream price reference |
For a 5,000-tonne physical cargo from Singapore to Shanghai, the standard hedge ratio is 500 BU lots (500 lots × 10 t = 5,000 t). At 10% margin and 3,682 CNY/t, that requires roughly 1.84 million CNY (~USD 258,000) of initial margin.
How Are Shanghai Bitumen Futures Priced and Settled?
Pricing follows a straightforward but strictly enforced mechanism. Understanding it is essential for anyone pricing physical cargoes off the SHFE curve.
Settlement price = volume-weighted average price of all trades in that contract during the last 15 minutes of the day session (13:45–15:00 CST).
Delivery process:
| Stage | Timing | Requirement |
|---|---|---|
| Position limit notice | 3 trading days before delivery month | Reduce to 500 lots |
| Delivery intent filing | Last 3 trading days | Reduce to 100 lots |
| Standard warehouse receipt | Delivery month | 70kg drums or bulk tanker |
| Final settlement | 5th trading day after last trading day | Physical transfer or cash close |
Cost stack for a physical hedge (per lot, 10 t):
- Initial margin: ~3,682 CNY (at 10%)
- Exchange fee: ~1.5 CNY/lot round-turn (varies)
- Broker commission: 2–10 CNY/lot typical
- Slippage on a 500-lot order: 4–12 CNY/t in normal liquidity
That means a 500-lot hedge on a 5,000-tonne cargo carries all-in frictional costs of roughly 0.4–0.7% of notional — low enough to make BU the default hedging venue for Asian bitumen flows.
Trading Strategies and Risk Management
BU is used for three core strategies. Each has a distinct risk profile and margin implication.
A trader holding a 5,000-tonne Singapore-origin cargo at USD 510/t FOB would short 500 BU lots at 3,682 CNY/t. If BU falls to 3,500 CNY/t (~11% drawdown), the short gains 182 CNY/t, offsetting most of the physical mark-to-market loss. Liquidation is feasible within 1–3 trading sessions given 1.42M daily lot volume.
BU's main contracts (Jan/May/Sep) frequently trade in contango during the off-season (Nov–Feb) and backwardation during peak paving (Jun–Aug). A typical BU2509–BU2601 spread has ranged +20 to +95 CNY/t over the last 12 months. Carry cost per month is approximately 0.8–1.2%.
Because BU and Brent correlate at 0.78–0.84, dislocation between SHFE bitumen and Singapore physical prices creates import arbitrage windows. When BU is more than 150 CNY/t above import parity, imported cargo becomes unprofitable — the exact condition currently reading -142 CNY/t.
Risk controls for BU positions:
- Hard stop at 2.5× ATR (average true range ≈ 55 CNY/t) — i.e., 130–140 CNY stops
- Margin buffer: maintain 150% of initial margin to survive a two-limit move
- Position size: cap single-contract exposure at 20% of portfolio notional
Frequently Asked Questions
What is the SHFE code for bitumen futures?
The code is BU, listed on the Shanghai Futures Exchange (SHFE) since October 2013. Each contract represents 10 tonnes of 60/70 or 70/90 penetration-grade bitumen, quoted in CNY per tonne.
What is the current price of Shanghai bitumen futures?
The front-month BU2509 contract settled at 3,682 CNY/tonne (~517 USD/t at 7.12 CNY/USD), with a 52-week range of 3,280–3,895 CNY/t. Open interest stood at 218,450 lots across all contracts.
What is the minimum margin to trade SHFE bitumen futures?
The exchange minimum is 10% of contract value, or roughly 3,682 CNY per lot at 3,682 CNY/t. Brokers typically add 2–5 percentage points, so real-world margin is 12–15%, or 4,400–5,500 CNY/lot.
How do Shanghai bitumen futures affect physical export prices?
BU sets the reference price for imported asphalt in East China. When BU rises 100 CNY/t, CFR China physical offers from Singapore and South Korea typically follow within 2–5 business days, and import arbitrage windows close once BU exceeds parity by 150 CNY/t.
What are the trading hours for BU?
Day session runs 09:00–11:30 and 13:30–15:00 CST, with a night session from 21:00 to 23:00 CST. Settlement prices are computed from the 13:45–15:00 volume-weighted average on the day session.
Price Your Cargo with the 6Tar Cost Calculator
Bitumen export economics hinge on the spread between SHFE BU, Singapore physical, freight, and margin costs — and a 50 CNY/tonne swing on a 5,000-tonne cargo moves landed value by 250,000 CNY (~35,000 USD). Before you quote, hedge, or fix a long-term supply agreement, run the numbers.
Use the 6Tar cost calculator to model landed cost, hedge ratio, margin requirement, and import parity in real time — built specifically for bitumen traders pricing against the SHFE BU curve.