science

Saint-Petersburg International Mercantile Exchange

Saint-Petersburg International Mercantile Exchange is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Saint-Petersburg International Mercantile Exchange rather than just read about it. In short: The Saint-Petersburg International Mercantile Exchange (SPIMEX) is a Russian commodity exchange incorporated in 2008. It has offices in Moscow, Saint Petersburg and Irkutsk.

Key takeaways

Saint-Petersburg International Mercantile Exchange belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Saint-Petersburg International Mercantile Exchange to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Saint-Petersburg International Mercantile Exchange from memory before moving on to harder problems.

Reference excerpt

The Saint-Petersburg International Mercantile Exchange (SPIMEX) is a Russian commodity exchange incorporated in 2008. It has offices in Moscow, Saint Petersburg and Irkutsk.

General SPIMEX offers a wide range of products in exchange-traded refined products, crude oil, natural gas, coal, timber and construction materials as well as commodity derivatives. Its Refined Products Section focuses on spot contracts for all types of domestically traded refined products delivered from a great variety of designated locations executed under the uniform rules. The SPIMEX Derivatives Section focuses on cash-settled futures on the SPIMEX indices for exchange-traded refined products, physically settled futures on refined products and physically settled SPIMEX Urals Crude Futures. The clearing organization associated with SPIMEX is Nonbank financial institution – central counterparty «RDC» (previously – SDCO). SPIMEX calculates price indices for domestic exchange-traded and OTC-traded refined products. In 2022, the volume traded at the SPIMEX Refined Products Section (gasoline, diesel, jet fuel, fuel oil and petrochemicals) was equal to 29.13 million tonnes; at the SPIMEX Derivatives Section – RUB 13.9 bn and at the SPIMEX Natural Gas Section – 5.7 bcm. The total turnover of all trading sections of the Exchange in 2021 increased by 39.5% year-on-year (yoy) to RUB 1.494 trillion, in 2022 it slightly decreased to RUB 1.467 trillion. The volume traded in the SPIMEX Refined Products Section in 2022 amounted to 29.127 million tonnes (MMT) rising by 7.8% YoY, while the turnover stood at RUB 1.404 trillion ($17.78 bln) enjoying a 3.1% rise YoY. In March 2022, the Association of European Energy Exchanges (Europex) excluded SPIMEX from its membership due to Russia's invasion of Ukraine. Until 2022, the requirements of the Russian government for oil companies to sell part of their products through SPIMEX were in effect. According to these requirements, 11% of gasoline production, 7.5% of diesel fuel, 11% of jet fuel, 3% of residual fuel oil production and 7.5% of LPG were subject to sale through the exchange. On February 27, the shareholders’ meeting decided to change the abbreviated name of the exchange: instead of JSC SPIMEX, the exchange will be called JSC Petersburg Exchange.

Commodities traded SPIMEX has been trading:

refined products — since 2008 refined products futures — since 2010 crude oil — since 2013 natural gas — since 2014 timber — since 2014 crude oil futures – since 2016 mineral fertilizer – since 2017 coal – since 2019

Fast facts Since 2011, SPIMEX has been registering OTC transactions in crude oil, refined products, coal, natural gas and LPG. SPIMEX calculates price indices for domestic exchange-traded and OTC-traded refined products. Since 2012, the SPIMEX Indices have been used as the underlying assets for futures traded at its Derivatives Section. In 2016, the SPIMEX Urals Crude Futures contract was launched. SPIMEX launched ULSD Futures on 11 November 2019.

Refined products market

SPIMEX — the primary trading venue for exchange-traded refined products in Russia. In 2016, the volume of refined products and petrochemicals traded on SPIMEX amounted to 17.16 million tonnes. The number of trading participants exceeded 1,900 including all Russian majors; the list of SPIMEX designated delivery points include all key domestic refineries; the list of commodities accepted to trading includes all types of domestic refined products. By 2021, the trade in petroleum products has grown to 27.03 million tons (+ 16.6% compared to 2020), by 2022 to 29.13 million tons (+ 7.8% compared to 2021).

Indices Territorial indices The average price for refined products at large Russian refineries located in European Russia, the Urals & Western Siberia and Eastern Siberia & the Russian Far East. Regional indices The average price for refined products at 9 large domestic demand centers. Composite index A unified indicator of Russian domestic refined products which measures price performance of an average tonne of exchange-traded light refined products. National indices The average price for refined products at large refineries located all over Russia.

Crude oil market SPIMEX launched trading in crude oil in 2013. In 2022, the volume traded at the SPIMEX Crude Oil Section stood at 519,400 tonnes (+ 164,4% y-o-y) with the turnover amounting to RUB 16.974 bn.

Derivatives market SPIMEX offers a variety of futures contracts (at present there are more than 20 instruments available). The volume traded at the SPIMEX Derivatives Section in 2022 reached 69,326 futures contracts in the total amount of RUB 13.9 bn. More than 10 products are currently offered by the SPIMEX Derivatives Section, including, in particular:

physically settled SPIMEX Urals Crude Oil Futures (FOB, Primorsk); physically settled SPIMEX ULSD Futures (FOB, Primorsk); cash-settled futures on the SPIMEX indices for exchange-traded domestic market petroleum products, and physically settled futures on domestic market petroleum products. Underlying commodities: crude oil; diesel; Gasoline Regular 92; Gasoline Premium 95 and the SPIMEX indices for exchange-traded petroleum products. Physical delivery is a distinctive feature of SPIMEX commodity-based futures. Risk Management System (RMS) Performance of the obligations under futures contracts is guaranteed by the Clearing House.

Natural gas market On 24 October 2014, SPIMEX launched trading in natural gas. SPIMEX designated balancing points (located around compressor stations) are as follows: Nadym, Lokosovo and Parabel. Trading Participants include largest domestic natural gas producers and end-users (utilities, fertilizer and metallurgy companies). In October 2015 SPIMEX launched a day-ahead contracts trades and in October 2016 - trades for delivery on national holidays and weekends. In 2016, the volume traded at the SPIMEX Natural Gas Section amounted to 16.812 bcm (+119.8% y-o-y), in 2021 – 6.691 bcm (-58.3% y-o-y) and in 2022 – 5.700 bcm (-14.8% y-o-y). Active development of the market continues. The first stage of commercial balancing of natural gas traded on the Exchange has been implemented. Buyers are now able to sell on the Exchange volumes of natural gas that were purchased earlier, but were not drawn by the end of the day.

… excerpt ends here. Continue reading the full article.

Illustrations

Worked examples

Example 1 — a first encounter with Saint-Petersburg International Mercantile Exchange

Start with the simplest possible case. Write down what Saint-Petersburg International Mercantile Exchange claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Saint-Petersburg International Mercantile Exchange before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Saint-Petersburg International Mercantile Exchange ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Saint-Petersburg International Mercantile Exchange

In research: Saint-Petersburg International Mercantile Exchange appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Saint-Petersburg International Mercantile Exchange in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Saint-Petersburg International Mercantile Exchange is common in secondary-school and first-year university syllabi. It links to neighbouring topics Commodity exchanges, Financial services companies established in 2008, Petroleum, so understanding it makes those chapters shorter.
In everyday life: Look for Saint-Petersburg International Mercantile Exchange outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Saint-Petersburg International Mercantile Exchange in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Saint-Petersburg International Mercantile Exchange means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Saint-Petersburg International Mercantile Exchange out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Saint-Petersburg International Mercantile Exchange in simple terms?

The Saint-Petersburg International Mercantile Exchange (SPIMEX) is a Russian commodity exchange incorporated in 2008. It has offices in Moscow, Saint Petersburg and Irkutsk.

Why does Saint-Petersburg International Mercantile Exchange matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Saint-Petersburg International Mercantile Exchange?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Saint-Petersburg International Mercantile Exchange.