Biofuel Bunker Snapshot: Antwerp at steady B30-VLSFO premium over Rotterdam

ARA B30-VLSFO prices gain modestly

Gibraltar's B30-VLSFO premium down $19/mt

B24-VLSFO available with short lead times in Zhoushan

Europe

Rotterdam’s B30-VLSFO (POMEME) price has gained $9/mt over the past week, while Antwerp’s B30-VLSFO (UCOME) price has gained $10/mt.

Prima Markets' ARA POMEME and UCOME barge benchmarks have both edged up by $1/mt each.  

Antwerp’s B30-VLSFO price holds a $96/mt premium over Rotterdam’s blend, little changed from last week.

Unlike in Antwerp, Rotterdam’s B30-VLSFO (POMEME) price is rebated by Dutch suppliers who can generate ZRE units from renewable biofuel bunker sales. Biofuels listed in Part A of the EU’s Renewable Energy Directive's (RED III) Annex IX, such as POMEME, can generate ZRE units. Those listed in Part B of Annex, such as UCOME, cannot.

The Dutch government disfavours UCOME uptake by international shipping to free up supply for its domestic road transport and inland shipping sectors.

Gibraltar’s B30-VLSFO price has slipped $9/mt lower over the last week, while its conventional VLSFO price has gained $10/mt. Consequently, the blend’s premium over the conventional VLSFO price has decreased by $19/mt over the last week.

Gibraltar’s B30-VLSFO price now holds a $29/mt premium over Antwerp's, down from a $48/mt premium last week.

Off Denmark’s Skaw and in Sweden’s Gothenburg, B30-VLSFO has been priced around $150/mt over Rotterdam's and $50/mt over Antwerp's in the past week.

South America

Rio Grande’s B30-VLSFO price has dropped significantly, falling $18/mt lower over the week, and its premium over the port’s conventional VLSFO price has narrowed by $29/mt,

Consequently, Rio Grande’s B30-VLSFO’s premium over Rotterdam has fallen from $94/mt to $67/mt.

Singapore and Fujairah

Singapore’s B30-VLSFO (UCOME) price has jumped $17/mt higher.

China is a major source of UCOME for the Singaporean biofuel bunker market, and Prima's China UCOME cargo price has slid $10/mt lower over the week to seemingly reduce wholesale costs.

Singapore's conventional VLSFO price has moved in the opposite direct and gained $8/mt over the week to provide counter-pressure.

Fujairah’s B30-VLSFO price has gained by a modest $6/mt and is now at a $16/mt premium over Singapore, down from $27/mt last week.

B24-VLSFO can be delivered in China’s Zhoushan with 4-7 days of lead time. It has been priced $18/mt higher than Singapore's B24-VLSFO in the past week.

By Nachiket Tekawade

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