Fuel Switch Snapshot: B100 surges to narrow discounts in Rotterdam

B100 discounts shrink by $77–97/mt in Rotterdam

Rotterdam LBM price drops against B100

Singapore B100 premium over HSFO crosses $500/mt

All bunker prices described in the text below have been adjusted for calorific contents to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and nonEU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and the average price of compliance surpluses we have picked up from the FuelEU pooling market from the past week. 

Rotterdam’s B30-LSMGO price has fallen by $37/mt, while its LSMGO price has declined by a sharper $46/mt over the past week. The B30-LSMGO benchmark’s discount to pure LSMGO has narrowed by $9/mt to $125/mt.

Over the same period, Rotterdam’s B100 price has risen by $52/mt. B30-LSMGO is now $232/mt more expensive than B100, marking a sharp $90/mt contraction in its premium week on the week.

All three prices are expressed as VLSFO-equivalents and adjusted for EU regulations, making them directly comparable. The fuels are also compliant with the 0.10% sulphur limit in European Emission Control Areas (ECAs).

Ships bunkering B30-VLSFO in Rotterdam and burning it on a voyage to a nonEU port will incur overall costs of $558/mt. This is $23/mt less than pure VLSFO and $351/mt less than B100 for the same voyage.

B100’s discounts to conventional fuel grades have narrowed by $77–97/mt over the week, to $139–359/mt for EU-EU voyages.

Rotterdam’s B100 is $154-375/mt cheaper than the port’s LNG, depending on a vessel’s LNG engine type. But the discounts have narrowed by $65-68/mt over the past week.

Liquid fuels

Rotterdam’s HSFO, VLSFO and LSMGO prices have declined by $26/mt, $37/mt and $46/mt, respectively, over the past week.

Its B100 (POMEME) price has risen by $52/mt in the same period. The B100 price has gone up despite a $17/mtB100 increase in the estimated value of Dutch ZRE A tickets. This ZRE A value is now estimated at $572/mtB100.

ENGINE’s assessed FuelEU Maritime pooling value for B100 on EU-EU voyages has edged up by $2/mt on the week, to $671/mt.

In Singapore, HSFO and LSMGO prices have risen by $16/mt and $8/mt, respectively, while VLSFO has declined by $14/mt. Singapore’s B100 price has jumped $55/mt higher.

Singapore's B100 premiums over conventional fuel grades have increased by $39-69/mt to $327–524/mt for voyages between Singapore and EU ports.

Liquid gases

Rotterdam’s LNG price has fallen by $17/mt over the past week for vessels with Otto medium speed (Otto MS) engines sailing between EU ports, largely tracking a $16/mt reduction in the EU ETS cost.

Over the same period, Rotterdam's 0 gCO2e/MJ liquefied biomethane (LBM) price for the same engine type has edged up by $5/mt.

The higher default methane slip from these Otto MS engines started getting penalised heavily in the EU ETS regulation from this year. This brings Rotterdam's LNG to a $515/mt premium over LBM for vessels with the same engine, and a $375/mt premium over B100.

For vessels with diesel slow speed (diesel SS) engines, Rotterdam's LNG has declined by $14/mt, closely aligning with a $12/mt drop in the EU ETS cost over the week. The LBM price for vessels with this engine type has increased by $8/mt.

Vessels with diesel SS engines have lower default methane slips. LNG bunkered in Rotterdam on these vessels costs $522/mt more than LBM and $154/mt more than B100 on EU-EU voyages.

LBM’s discounts to B100 in Rotterdam have widened by $42-44/mt in the past week, to $140-368/mt.

In Singapore, LNG bunker prices have increased by $15–17/mt, depending on the vessel’s engine type and its default methane slips.

By Konica Bhatt

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