Why is the volume on the contract for microdiesel (MRB) still almost null?
- Thread starter trader221
- Start date
I say MBR but not LBR.
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LOL, it'$ a tough business\
i had plenty of failure on hi volume contracts like SH, especially getting a great fill.
But SH moves so little/ that's life
Give the little lumber contract time,+a micro manger like pres nixon ''price fixer'' LOL, impeached. Maybe good for contracts + volume \LOL
1. MRB is a diesel fuel produced from vegetable oil. It was first introduced towards the end of 2017, but due to its lack of volume, the price was lower than expected. Since then, the demand has been increasing, and the price has risen accordingly. There have been many rumors about the supply being cut off, but these rumors have not turned out to be true. The reason behind this is simple; the production capacity is much less than the global demand at present. Currently, around 20% of the total production capacity is utilized for domestic use only.
2. A major factor behind the low supply is the high value added tax (VAT) imposed on the product. Due to the VAT, the cost of producing the diesel has increased, leading to a higher selling price of MRB. Another factor is that the current price of crude oil is quite high compared to the time last year. Since the value of crude oil has gone up, the cost of manufacturing the diesel has also risen. If the price of crude were to go down, the cost of producing MRB would be lowered, resulting in the rise of sales volumes.
3. MRB is the cleanest diesel fuel available today. Its combustion causes little or no emission of pollutants, making it a perfect alternative to diesel fuels. It burns cleaner than gasoline and produces fewer carbon emissions than other bio-fuels, making it a greener option. In addition, it is a non-toxic product, unlike other bio-fuels.
4. According to the government of India, it is mandatory for all vehicles manufactured after April 1, 2016 to run on MRB. Therefore, the demand for MRB is likely to increase over the coming years.
5. As the supply of MRB increases, the price is bound to drop. More people will start using it, driving the demand even further. Eventually, the value of this product could become similar to or cheaper than regular diesel.
2. A major factor behind the low supply is the high value added tax (VAT) imposed on the product. Due to the VAT, the cost of producing the diesel has increased, leading to a higher selling price of MRB. Another factor is that the current price of crude oil is quite high compared to the time last year. Since the value of crude oil has gone up, the cost of manufacturing the diesel has also risen. If the price of crude were to go down, the cost of producing MRB would be lowered, resulting in the rise of sales volumes.
3. MRB is the cleanest diesel fuel available today. Its combustion causes little or no emission of pollutants, making it a perfect alternative to diesel fuels. It burns cleaner than gasoline and produces fewer carbon emissions than other bio-fuels, making it a greener option. In addition, it is a non-toxic product, unlike other bio-fuels.
4. According to the government of India, it is mandatory for all vehicles manufactured after April 1, 2016 to run on MRB. Therefore, the demand for MRB is likely to increase over the coming years.
5. As the supply of MRB increases, the price is bound to drop. More people will start using it, driving the demand even further. Eventually, the value of this product could become similar to or cheaper than regular diesel.
The world could be rather strange.
There are some small-size contracts where the volume is relatively low compared with
the big-size contracts.
These are the small-size contracts even the small retail newbie traders are not interested to trade :
small size Nikkei <<< volume almost zero!
small size CAC40 <<< volume almost zero!
small size copper
small size Nymex Natural Gas .....
They prefer big-size contracts. Perhaps they have lots of $$$.
Look at this :
big size Nikkei margin requirement is $15K / lot
small size Nikkei margin requirement is $3K / lot
But there are some small-size contracts that are extremely popular (eg Micro NQ).
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