Bio Premiums Narrow In Singapore And Rotterdam

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  • The biofuel bunker snapshot for May 20, 2024, highlights narrowing bio premiums in key ports like Singapore and Rotterdam.
  • Changes in bio-bunker prices and premiums are influenced by factors such as global fuel markets, demand dynamics, and regulatory frameworks governing biofuel usage.

The latest biofuel bunker snapshot provides insights into the changing landscape of biofuel prices and premiums in major ports. Analyzing fluctuations in bio-bunker prices and premiums offers valuable information for stakeholders navigating the complexities of the maritime industry amidst evolving regulatory and market conditions.

Singapore

In Singapore, biofuel benchmarks for B24-VLSFO and B24-LSMGO UCOME have experienced a notable decline, each dropping by $11/mt. This decline is attributed to a $30/mt drop in UCOME FOB China price, driven by weak demand from the EU. Despite the decrease, Singapore’s biofuel blends remain priced higher than Rotterdam’s, with premiums narrowing by $7/mt in the past week. However, biofuel bunkers still represent only a small fraction (1.4%) of Singapore’s total bunker sales.

Rotterdam

Rotterdam has also witnessed a decline in biofuel benchmarks, with B30-VLSFO and B30-LSMGO HBE benchmarks decreasing by $9–10/mt. The decline is partly influenced by a drop in PRIMA-assessed POMEME price in the ARA by $25/mt. Despite the decline, Rotterdam’s biofuel premiums over pure conventional fuels have narrowed by $7-8/mt. The Dutch HBE market has remained stagnant, with tickets of the A category sitting unchanged at €8.75/GJ ($9.51/GJ). However, the rebate of around $84/mt for B30 blends sold in the Netherlands continues to make it lucrative to bunker advanced biofuel blends in Dutch ports.

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Source: Engine Online