New Delhi: Aviation turbine fuel futures trading kicked off on a negative note on 7 July on the MCX counter, tracking weak global cues.
At 1200 hrs, July delivery of jet fuel was down by 0.83% to Rs7,678 per barrel.
ATF is a special petroleum product, used in airlines.
“ATF prices have direct co-relation with crude oil price movement. Melting down in crude oil prices have resulted lower opening of ATF in the domestic market,” SMC Brokerage analyst Sandeep Joon told PTI.
Even the global prices of ATF on Tokyo Commodity Exchange (TOCOM) were trading weak, he said.
On New York Mercantile Exchange, August crude slipped 1.72% to $143.57 a barrel.
ATF futures have been launched for the first time in the country to help hedgers like airlines and refiners at a time when crude prices are touching its peak.
The Rs10,000-crore ATF market is big in terms of value but has a few physical players—refiners and airlines. The consumption of ATF in the country was 3.5 million tonnes in 2005-06.
Indigenous production of ATF is 7.8 million tonnes and India is self-sufficient in production. It also exports over 3.6 million tonnes of the fuel annually.