Biofuel Bunker Snapshot: Rotterdam’s B30-VLSFO premium over VLSFO narrows sharply

ZRE A ticket prices surge

Singapore B100 price up sharply on the week

Singapore B30-VLSFO at $32/mt discount to Hong Kong

Europe

Rotterdam’s B30-VLSFO (POMEME) price has edged up $2/mt in the past week, while the Dutch port’s conventional VLSFO price has jumped $66/mt over the same period.

This has narrowed Rotterdam’s B30-VLSFO price premium over conventional VLSFO by $64/mt, to $191/mt.

Dutch suppliers can generate ZRE A tickets for selling low-carbon fuels, which can be traded with other suppliers. The price of these tickets has jumped from €172.5/mtCO2e ($195/mtCO2e) last Friday to €240/mtCO2e ($268/mtCO2e) on Thursday this week.

These ZRE A tickets help lower Rotterdam’s biofuel prices compared with other ports. Belgium has no such mechanism.

Prima Markets’ ARA UCOME and POMEME barge prices, both indicators of feedstock sourcing costs, have each slumped $146/mt in the past week, to $1,710/mt and $1,780/mt respectively. That leaves UCOME at a $70/mt discount to POMEME.

Higher ZRE A ticket prices and lower feedstock costs may have helped counter the rise in Rotterdam’s conventional VLSFO price.

Meanwhile, Rotterdam’s B30-LSMGO (POMEME) price has gained $19/mt to $1,417/mt, lagging a $68/mt rise in the port’s conventional LSMGO price.

This has narrowed Rotterdam’s B30-LSMGO premium over conventional LSMGO by $49/mt, to $21/mt.

B100 has been priced at $1,185/mt in Rotterdam today, $88/mt lower than last week.

In the neighbouring Belgian port of Antwerp, B100 has been priced at $1,932/mt today, $747/mt more than in Rotterdam.

Asia

Singapore’s B30-VLSFO (UCOME) price has gained $75/mt in the past week to $1,094/mt, outpacing a $51/mt rise in the port’s conventional VLSFO price.

This has widened Singapore’s B30-VLSFO price premium over conventional VLSFO by $24/mt, to $196/mt.

Prima Markets’ price assessment for China UCOME cargo, which is a key feedstock for Singapore’s B30-VLSFO blend, has held at $1,215/mt.

B100 has been priced at $1,445/mt in Singapore today.

Hong Kong’s B30-VLSFO has been priced at $1,126/mt, a $179/mt premium over the port’s conventional VLSFO price. That puts it $32/mt above Singapore’s blend.

In other biofuel bunker news, the Biofuel Company of Saudi Arabia plans to work with local bunker suppliers in Qatar to arrange physical deliveries of B100 to vessels at Qatari ports, a company spokesperson told ENGINE.

By Nachiket Tekawade

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