Singapore
Singapore’s B24-VLSFO UCOME price has declined by $4/mt in the past week, while its B24-LSMGO UCOME price fell by $15/mt. The two bio-bunker prices have declined despite a $20/mt increase in the UCOME FOB China benchmark, according to PRIMA Markets.
Some offers for UCOME FOB China were noted above $1,000/mt last week, which contributed to lift this cargo price benchmark higher, PRIMA said.
Several suppliers in Singapore determine their B24-VLSFO prices by adding a biofuel premium to the price of the VLSFO component, which is typically based on a FOB VLSFO cargo price. The biofuel premiums have varied widely among suppliers and can depend on product availability and whether the bunker tankers are carrying bio-products, a trader said.
Delivered B100 (100% biofuel) was indicated at $1,150/mt last week in Singapore. Only a few suppliers in Singapore, such as Vitol, which operates an IMO type 2 chemical tanker, can supply biofuel blends exceeding B25 (25% biofuel).
Fratelli Cosulich did also recently take delivery of an IMO type 2 chemical tanker in Singapore, which it has chartered to commodity trader and bunker supplier Trafigura. As of now, we are unable to supply blends above B25 as our sole chemical tanker has been chartered out, a source from the company told ENGINE.
Rotterdam
Rotterdam’s B30-VLSFO HBE price has come down by $19/mt in the past week, while its B30-LSMGO HBE price has dropped by a greater $34/mt. Declining prices for palm oil mill effluent methyl ester (POMEME) have seemingly pulled Rotterdam’s delivered bio-bunker prices sharpy down with them.
PRIMA has assessed HBE A tickets at €8.35/GJ ($9.09/GJ), up by €0.10/GJ ($0.11/GJ) on the week. This could theoretically mean a $2/mt higher rebate for B30 blends sold in the Netherlands.
Biofuel price premiums over pure conventional fuels in Rotterdam are $198/mt for B30-VLSFO HBE blends and $148/mt for B30-LSMGO HBE blends. These premiums have remained roughly steady in the past week and are still significantly wider than Singapore’s.
The ARA’s price of B30-VLSFO UCOME has declined in tandem with the B30-VLSFO HBE price in Rotterdam in the past week. This has meant that the UCOME blend remains unattractive at a $70/mt premium over the rebated HBE price.
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Source: Engine.online
