Biofuel Bunker Snapshot: Biofuel premiums narrow as VLSFO prices rally
Falling biofuel prices countered by rising oil values
Bio-bunker premiums over VLSFO narrow
Producer claims to make carbon-negative biofuel
Rotterdam
The price of B30-VLSFO HBE has held roughly steady in Rotterdam. A $9/mt rise for VLSFO has been more than countered by an $11/mt drop in Prima Markets’ POMEME CIF ARA barge price, and a $1/mt rise in estimated HBE rebates for B30 blends.
B30-VLSFO HBE is now at a $200/mt outright premium over pure VLSFO, an $8/mt drop from last week.
VLSFO has strengthened amid a 4% rise in ICE Brent crude futures. Bunker availability for the fuel has tightened further, with recommended lead times now at 8-10 days, up from 7-8 days a week earlier.
Prima’s POMEME and UCOME barge prices slumped to four-month lows last week and were last assessed at $1,420/mt and $1,405/mt, respectively.
“UCOME prices in Europe have remained under pressure, counter to expectations by many traders for a reversal in the muted trend once imported Chinese gallons stop hitting the trading bloc’s market,” Prima said.
B30-VLSFO UCOME ARA has moved up by $3/mt, which is slightly more than the $1/mt weekly increase for HBE-rebated B30-VLSFO price in the ARA.
Singapore
B24-VLSFO UCOME has pushed $20/mt higher in Singapore. A $30/mt jump in VLSFO has lifted the B24-VLSFO blend. So has a $1/mt increase in freight for UCOME from China to Singapore, which now stands at $13.50/mt.
Some counter-pressure has come from a $13/mt drop in UCOME FOB China cargoes, assessed by Prima. There has been muted activity in the Chinese UCOME market, with lower offers and a price assessed down to $1,125/mt, Prima reports.
“Chinese biodiesel producers are still experiencing difficult operating conditions amid steep waste oils prices, which have seen most production plants cease operations since the summer of 2024,” the biofuel price reporting agency said.
Singapore’s VLSFO benchmark has come up amid a recovery in Brent crude futures and tighter bunker availability. Lead times of 7-19 days are now advised.
B24-VLSFO’s premium over VLSFO has narrowed by $10/mt over the past week, to $176/mt now.
Other bio-bunker news
Chimbusco Pan Nation delivered its first B30 stem in Hong Kong. It supplied the biofuel to a container ship operated by Orient Overseas Container Line (OOCL) with a bunker oil tanker. This “milestone” follows the IMO's recent approval of a draft amendment that raised the permissible biofuel blend limit for bunker carriers from 25% to 30%, the company said.
SinoBunker has started biofuel bunker supply in the Chinese port of Zhoushan. It bunkered a container ship with 4,200 mt of B24-VLSFO UCOME, according to market intelligence provider JLC.
Algae biofuel producer HutanBio claims that its microalgae-based biofuel removes more CO2 than it emits during its production and transport steps. Microalgae has a natural ability to capture and store CO2, it said.
By Erik Hoffmann
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