Biofuel Bunker Snapshot: Higher feedstock prices support B30-VLSFO prices

Conventional VLSFO prices drop across ports

Narrower B30-LSMGO premium over LSMGO in Rotterdam

Singapore bio-bunker sales rose in February

ARA and Europe

Rotterdam’s B30-VLSFO (POMEME) price has increased by $26/mt in the last week, while its conventional VLSFO price has dropped by $12/mt.

Antwerp’s B30-VLSFO (UCOME) price has gained by $58/mt in the past week, while conventional VLSFO has slumped $80/mt lower.

Prima Markets-assessed ARA POMEME and UCOME barge prices have surged by $149/mt each, in a sign that biofuel wholesale costs are increasing.

Unlike in Antwerp, Rotterdam’s B30-VLSFO price is rebated by suppliers who can generate ZRE A tickets from advanced biofuel bunker sales. ZRE A ticket prices have increased to €137.50/mtCO2e, from €127.50/mtCO2e last week.

Over the last week, Rotterdam’s B30-VLSFO (POMEME) price discount to Antwerp’s B30-VLSFO (UCOME) price has widened from $81/mt to $113/mt.

Rotterdam’s B30-LSMGO price has increased by $43/mt, compared to $160/mt jump in its conventional LSMGO price. ARA remains heavily reliant on gasoil imports and traders are pricing in a future LSMGO import tightness from the ongoing war in the Middle East.

Consequently, Rotterdam’s B30-LSMGO premium over conventional LSMGO has narrowed from $155/mt to just $38/mt.

Gibraltar’s B30-VLSFO (UCOME) price has gained by around $77/mt in the last week.

Gibraltar is facing some weather-related bunker disruptions, with inbound traffic suspended as high swells are making it challenging for pilots to board vessels, shipping agent A Mateos & Sons said.

The weather is expected to improve by Friday evening, but the disruption has led to congestion in the port, with around 19 vessels waiting for bunkers on Friday morning, according to port agent MH Bland.

Around 7-10 days of lead time is recommended for fixing biofuel blends in the ARA and Gibraltar Strait, according to a trader.

Singapore

Singapore’s B30-VLSFO (UCOME) price has increased by $51/mt in the past week, while its conventional VLSFO price has slumped $144/mt lower. B30-VLSFO's premium over VLSFO has therefore widened sharply, to $292/mt.

Prima's China UCOME cargo price has increased by $50/mt in the past week. China is a major source for Singaporean UCOME importers.

Several suppliers in Singapore have paused biofuel deliveries to focus on selling VLSFO with strong margins, a trader said.

Separately, Singapore sold nearly 3,300 mt/day of bio-bunkers in February, a significant rise from around 1,900 mt/day in January, according to preliminary figures from the port authority.

In other biofuel news, Japan’s Nippon Biofuels supplied a B10 blend of jatropha-based straight vegetable oil (SVO) and VLSFO to a Japanese RoRo vessel for a bunker trial.

By Nachiket Tekawade

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