Biofuel Bunker Snapshot: Rotterdam's B30-VLSFO premium over VLSFO widens sharply
Rotterdam's B30-LSMGO falls less than conventional LSMGO
ARA feedstock costs drop
Singapore's B30-VLSFO premium narrows
Europe
Rotterdam's B30-VLSFO (POMEME) price has gained $12/mt in the past week, even as the Dutch port's conventional VLSFO price has dropped $73/mt over the same period.
This has widened Rotterdam's B30-VLSFO price premium over conventional VLSFO by $85/mt, to $255/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 dropped from €175/mtCO2e ($199/mtCO2e) last Thursday, to €172.5/mtCO2e ($195/mtCO2e) today.
These ZRE A tickets help lower Rotterdam's biofuel prices compared with other ports. Belgium has no such mechanism.
Meanwhile, Rotterdam's B30-LSMGO (POMEME) price has dropped $94/mt to $1,398/mt, most probably pressured by a $143/mt fall in the port's conventional LSMGO price.
This has widened Rotterdam's B30-LSMGO premium over conventional LSMGO by $49/mt, to $70/mt.
B100 has been priced at $1,273/mt in Rotterdam today, $89/mt lower than last week.
Prima Markets' ARA UCOME and POMEME barge prices, both indicators of feedstock sourcing costs, have each slumped $139/mt lower in the past week, to $1,856/mt and $1,926/mt respectively. That leaves UCOME at a $70/mt discount to POMEME on barge level.
Asia
Singapore's B30-VLSFO (UCOME) price has dropped $86/mt in the past week to $1,019/mt, while the port's conventional VLSFO price has declined $34/mt over the same period.
This has narrowed Singapore's B30-VLSFO price premium over conventional VLSFO by $52/mt, to $172/mt.
Prima Markets' price assessment for China UCOME cargo, which is a key feedstock for Singapore's B30-VLSFO blend, has dropped $15/mt to $1,215/mt. This may have weighed on the biofuel blend's price.
In other biofuel bunker news, ENGINE recorded 77 B100 samples in Rotterdam between January and August, up 126% from a year earlier, lifting B100's share of the port's biofuel samples to 23% from 12%.
By Erik Hoffmann
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