Biofuel Bunker Snapshot: Dutch biofuel rebates ease from peak levels

Prices rise in major ports

Chinese UCOME demand is strong from Singapore

Singapore

Singapore’s B24-VLSFO UCOME price has risen by $7/mt in the past week, while the B24-LSMGO UCOME price has increased by more than double that amount, climbing by $18/mt.

These gains were supported by a $9/mt rise in the underlying ENGINE pure VLSFO price and a $23/mt increase in pure LSMGO.

Singapore remains a key market for Chinese UCOME, with PRIMA Markets noting offers of UCOME FOB China in bulk at $1,020/mt on Friday.

The B24-VLSFO UCOME premium over pure VLSFO has narrowed by $2/mt to $133/mt, while the B24-LSMGO UCOME premium over pure LSMGO has narrowed by $5/mt to $107/mt.

Rotterdam

Rotterdam’s B30-VLSFO HBE price has increased by $13/mt in the past week, while the B30-LSMGO HBE price has risen by a greater $25/mt. A sharp $21/mt rise in the underlying LSMGO price has contributed to a steeper gain in the B30-LSMGO HBE price.

The Dutch HBE A ticket price has been highly volatile, peaking at around €23/GJ ($24.05/GJ) early last week before dropping to €17.50/GJ ($18.30/GJ) by Friday. This translates to a theoretical rebate of $163/mt for B30-VLSFO HBE blends sold in Dutch ports. While down from $210/mt a week ago, the rebate remains significantly higher than the $90/mt recorded in April.

Rotterdam’s B30-VLSFO UCOME price has dropped sharply by $35/mt following a massive $125/mt decline in PRIMA’s UCOME FOB ARA price. Despite this decrease, B30-VLSFO UCOME remains $157/mt higher than the B30-VLSFO HBE price, as UCOME blends do not qualify for Dutch rebates like POMEME-based fuels.

By Nithin Chandran

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