Biofuel Bunker Snapshot: Prices drop in key bunker ports

Chinese UCOME FOB price remains above $1,000/mt

Dutch biofuel rebates strengthen again

Singapore

Singapore’s B24-VLSFO UCOME price has shed $3/mt in the past week, while its B24-LSMGO UCOME price has decreased by a sharp $15/mt. The bigger drop in the B24-LSMGO price is partly because of a $20/mt decline in the underlying ENGINE conventional LSMGO price.

PRIMA Markets assessed the UCOME FOB China benchmark at $1,015/mt on Friday, up by $5/mt on the week. Bulk offers for UCOME FOB China were reported in the range of $1,000-$1,030/mt during the week. The strengthening of used cooking oil (UCO) prices in China has exerted upward pressure on UCOME export prices, PRIMA said.

The B100 (100% biofuel) was indicated at $1,289/mt in Singapore last week, a source said.

Only a few suppliers, such as Vitol, can deliver B100 as it operates a chemical tanker in Singapore. Unlike traditional bunker vessels, which are limited to delivering biofuel blends of up to B25, chemical tankers can supply blends up to B100. Consequently, most suppliers offer B24 as a standard, providing a slight buffer below the B25 limit.

Biofuel premiums in Singapore have widened by $1-5/mt over the past week. B24-VLSFO UCOME blends are now priced at a $140/mt premium over pure VLSFO, while B24-LSMGO UCOME comes at a $115/mt premium over pure LSMGO.

Rotterdam

Rotterdam biofuel benchmarks have mirrored the declines seen in Singapore. The B30-VLSFO HBE price in Rotterdam has edged down by $3/mt, while the B30-LSMGO HBE price has declined by a sharp $17/mt.

The Dutch HBE ticket price for 2024 has climbed in the past week. PRIMA assessed the ticket price at €15.25/GJ ($16.10/GJ) on Friday, up from €14.15/GJ ($14.94/GJ) a week ago. This increase equates to a theoretical rebate of $143/mt for B30-VLSFO HBE blends sold in Dutch ports, up by $11/mt from $132/mt noted a week ago.

Rotterdam’s B30-VLSFO HBE premium over pure VLSFO has narrowed by $6/mt in the past week to $180/mt, while its B30-LSMGO HBE premium over pure LSMGO has widened by $2/mt to $139/mt now.

Unlike its B30-VLSFO HBE price, Rotterdam’s B30-VLSFO UCOME price has gained by $9/mt in the past week with support from rise in underlying PRIMA UCOME FOB ARA price. This has widened its premium over the rebated B30-VLSFO HBE price from $126/mt to $138/mt on the week. UCOME-based biofuels are not eligible for Dutch advanced biofuel rebates, making them more expensive than POMEME-based biofuels, which qualify for these rebates.

By Nithin Chandran

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