Biofuel Bunker Snapshot: Rising ZRE A ticket price weighs on Rotterdam bio-bunker prices
ZRE A ticket prices sharply up
Rotterdam's B30-VLSFO price falls
Singapore's B30-VLSFO premium over pure VLSFO widens
Europe
Rotterdam's pure B100 (POMEME) price has increased $23/mt in the last week to $1,327/mt.
The B100 price has fluctuated, dropping around $100/mt from last Friday to Thursday this week, before increasing sharply in the past day to $1,327/mt today.
Dutch suppliers can generate ZRE A tickets for selling low carbon fuels, which can be traded with other suppliers.
The prices of these tickets have surged from €165/mtCO2e ($192/mtCO2eq) last Friday to €200/mtCO2eq ($232/mtCO2eq) today. They peaked at €283/mtCO2eq ($329/mtCO2eq) yesterday.
“One or more compliance buyers were buying [the ZRE A] tickets aggressively, so the increase is not coming from speculative buying,” Prima Markets analyst Ulrich Arnheiter told ENGINE.
The increase in demand for ZRE A tickets could indicate a market where suppliers are generating less compliance from biofuel bunkering than their obligation requires.
Biofuel feedstock costs have risen. Prima Markets-assessed POMEME barge price, which is an indicator of biofuel feedstock sourcing costs, has climbed $7/mt over the past week to $2,024/mt. The price has increased 7%, or $131/mt, in the last month.
Meanwhile, Rotterdam’s B30-VLSFO (POMEME) price has dropped $19/mt over the last week, despite a $17/mt increase in the Dutch port’s conventional VLSFO price during the same period.
Rotterdam’s B30-LSMGO (POMEME) price has increased $68/mt in the past week, with a $122/mt surge in the port’s conventional LSMGO price providing support.
Gibraltar’s B30-VLSFO (UCOME) is priced at $1,155/mt, a $50/mt premium over Lisbon’s B30-VLSFO price.
Lisbon’s B30-LSMGO is priced at $1,714/mt, an $81/mt premium over the port’s conventional LSMGO price.
Singapore
Singapore’s B30-VLSFO (UCOME) price has surged $54/mt in the past week to $1,105/mt.
The port’s conventional VLSFO price has increased $35/mt in the same period, which has probably supported the biofuel blend’s price.
By Nachiket Tekawade
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