- Singapore’s B24-VLSFO and B24-LSMGO UCOME prices rose, driven by a price increase in conventional VLSFO and rising China UCOME prices.
- Rotterdam’s biofuel prices showed mixed trends, with B30-LSMGO HBE increasing while B30-VLSFO HBE fell.
- With significant differences in price premiums, Singapore surpassed Rotterdam as the largest biofuel bunker hub.
Singapore’s B24-VLSFO UCOME price surged last week, driven by an $11/mt rise in the underlying ENGINE VLSFO price. In contrast, according to Engine, B24-LSMGO UCOME increased only modestly by $3/mt.
China UCOME Price Influence
The higher UCOME FOB China benchmark, up $20/mt to $970/mt, added upward pressure on Singapore’s biofuel prices.
According to PRIMA Markets, the increase in domestic waste-based oils, such as UCO, also supported UCOME prices.
Biofuel Premium Over Conventional Fuels
Biofuel premiums over conventional fuels rose, with Singapore’s B24-VLSFO UCOME at $116/mt and B24-LSMGO UCOME at $103/mt, up by $2-5/mt from the previous week.
In Rotterdam, the B30-VLSFO HBE price dropped by $8/mt, while B30-LSMGO HBE rose significantly by $19/mt, reflecting a $38/mt increase in conventional LSMGO prices.
Singapore Overtakes Rotterdam
Singapore surpassed Rotterdam as the largest biofuel bunker hub, with Q3 bio-blended bunker sales at 227,000 mt, 40% higher than Rotterdam’s 137,000 mt. Rotterdam’s sales marked a 41% decline from the previous quarter, reaching the lowest point since Q4 2021.
Singapore’s B24-VLSFO UCOME price stands at $22/mt higher than Rotterdam’s B24-VLSFO HBE (with POMEME-based biofuels). However, Rotterdam’s B24-VLSFO UCOME is about $55/mt more expensive than Singapore’s equivalent, as it lacks Dutch biofuel rebates.
HBE A Ticket Price Increase in Rotterdam
The Dutch HBE A ticket price rose sharply to €10.70/GJ ($11.55/GJ), up from €9.85/GJ ($10.64/GJ), which raises the theoretical rebate for B30-VLSFO HBE to $103/mt, an $8/mt increase over the prior week.
Rotterdam’s B30-VLSFO HBE premium over VLSFO narrowed by $8/mt to $186/mt, while B30-LSMGO HBE’s premium over pure LSMGO decreased by $19/mt to $144/mt.
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Source: Engine
