Biofuel Bunker Snapshot: Conventional VLSFO prices weigh on B30 blend prices

POMEME barge price drop pressures Rotterdam B30 blend price

Lead times of 7-10 days needed for biofuel in Rotterdam and Gibraltar

Singapore’s bio-bunker sales declined in April 

Rotterdam and Europe

Rotterdam’s B30-VLSFO (POMEME) price has decreased by around $59/mt in the last week.

A drop in the port’s conventional VLSFO price has weighed on the blend’s price.

Prima Markets has assessed a $16/mt fall in ARA POMEME barge prices. This may also have put a downward pressure on the B30-VLSFO blend price.

Rotterdam’s B30-LSMGO (POMEME) price has also decreased around $45/mt, weighed down by a drop of $114/mt in Rotterdam’s conventional LSMGO price.  

Rotterdam’s B30-LSMGO price premium over LSMGO has widened by around $69/mt in the past day.

Rotterdam’s B30-LSMGO price offers a $128/mt discount to Lisbon’s B30-LSMGO, and $114/mt discount to Piraeus’ B30-LSMGO price.

Gibraltar’s B30-VLSFO (UCOME) price has dropped $54/mt lower in the last week. A $31/mt drop in the port’s conventional VLSFO price has weighed on the price.

Lisbon’s B30-VLSFO (UCOME) has fallen more sharply by around $72/mt. This has widened its price discount to Gibraltar’s B30-VLSFO by around $18/mt during the week.

Getting deliveries of biofuel blends in both Rotterdam and Gibraltar may take around 7-10 days, a trader said.

Singapore

Singapore’s B30-VLSFO (UCOME) price has dropped around $25/mt during the week. A $37/mt drop in the port’s VLSFO price has put downward pressure on the blend price.

Singapore’s blend price now holds a $243/mt price premium over the conventional fuel price.

Singapore’s bio-blended bunker sales declined sharply in April, falling 26%, to their lowest level since January. Total volumes dropped to 68,000 mt, from 92,000 mt sold in March, and were almost 39% lower than the 111,000 mt recorded in the same month last year.

In other biofuel news this week,

Bunker supplier Fratelli Cosulich has taken delivery of an IMO Type 2 bunker vessel to meet low-emission bunker demand in Singapore.

UK-based biofuel company HutanBio has partnered with bioenergy firm Utopia to develop large-scale production of algae-based biofuels in Oman for sectors including bunkering.

By Nachiket Tekawade

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