The US was the top importer of Chinese UCO in August. Dutch rebates for biofuel remain largely steady, reports Engine.
Singapore
Singapore’s B24-VLSFO UCOME price has decreased by $5/mt, while its B24-LSMGO UCOME price has risen by $4/mt in the past week.
The price of B24-VLSFO UCOME has decreased due to a $7/mt drop in the underlying ENGINE conventional VLSFO price, while a $6/mt increase in the conventional LSMGO price has supported a rise in B24-LSMGO UCOME price.
PRIMA Markets assessed the UCOME FOB China benchmark at $970/mt on Friday, unchanged on the week. About 290,000 mt of used cooking oil (UCO) was exported by China in August, with the US being the major importer accounting for 160,000 mt of the total imports, PRIMA reported citing data from Chinese custom authority. Other key importers included Singapore (53,000 mt), Malaysia (25,000 mt) and Spain (20,000 mt).
Suppliers in Singapore sold about 68,000 mt of bio-blended bunkers in August, up from 49,000 mt sold in July.
Rotterdam
Rotterdam’s B30-VLSFO HBE and B30-LSMGO HBE prices have risen by $9-10/mt in the past week. These increases are supported by a $6/mt rise in the underlying ENGINE conventional VLSFO price and a $4/mt rise in conventional LSMGO price.
Additionally, a $19/mt increase in the underlying PRIMA’s POMEME CIF ARA price has added further upward pressure on both biofuel benchmarks.
PRIMA assessed Dutch HBE A ticket price at €8.50/GJ ($9.43/GJ) on Friday, down from €8.60/GJ ($9.54/GJ) the previous week. This equates to a theoretical rebate of $83/mt for B30-VLSFO HBE blends in Dutch ports, reflecting a $1/mt drop week-on-week. Unlike UCOME-based biofuel blends, POMEME-based biofuel blends are eligible for advanced biofuel rebates under the Dutch HBE system. This makes it lucrative to bunker advanced biofuel blends in the Dutch ports compared to ports in other countries where discounts don’t exist.
The B30-VLSFO UCOME is priced about $78/mt higher than the B30-VLSFO HBE price in Rotterdam.
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Source: Engine
