Biofuel Bunker Snapshot: Demand For Chinese Biodiesel Remains Thin Amid EU Investigations

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Changes in weekly bio-bunker prices (ENGINE-PRIMA Markets):

  • Singapore’s B24-VLSFO UCOME down by $2/mt to $742/mt
  • Singapore’s B24-LSMGO UCOME down by $19/mt to $847/mt
  • Rotterdam’s B30-VLSFO UCOME down by $22/mt to $811/mt
  • Rotterdam’s B30-LSMGO UCOME down by $46/mt to $919/mt
  • Rotterdam’s B30-VLSFO HBE down by $18/mt to $724/mt
  • Rotterdam’s B30-LSMGO HBE down by $41/mt to $832/mt

Singapore

Singapore’s B24-VLSFO UCOME price has remained steady over the past week, while its B24-LSMGO UCOME price has shed $19/mt. The price moves have narrowed B24-LSMGO premium over B24-VLSFO from $122/mt last week to $105/mt.

UCOME FOB China bulk prices have remained steady over the past week. “Offer levels for the product were reported at consistent levels throughout the week [previous week],” according to PRIMA Markets.

Chinese biodiesel demand 

Demand for Chinese biodiesel from European buyers has decreased because of the investigations, sources say. This could potentially lead to more inflows of Chinese UCOME into Singapore and may drag bio-bunker prices lower in the port.

Singapore’s bio-bunker sales rebounded in March. Around 66,000 mt of bio-bunkers were sold in March, more than four times the 16,000 mt sold in the shorter February month. The numbers are still lower than the peak bio-sales of 79,000 mt noted last October.

Rotterdam

Rotterdam’s B30-VLSFO and B30-LSMGO UCOME prices have come down by $22/mt and $46/mt, respectively. A steep drop in UCOME FOB ARA price has supported the declines in both benchmarks. PRIMA-assessed UCOME FOB ARA price has plunged by $83/mt to $1,280/mt over the past week.

The 2024 ticket price for advanced Dutch hernieuwbare brandstofeenheden (HBE) has come down from €9.61/GJ ($10.25/GJ) to €9.19/GJ ($9.80/GJ) and resulted in a $3/mt less rebate for B30 blends sold in the Netherlands. The rebate is still around $87/mt and makes it lucrative to bunker advanced biofuel blends in Dutch ports compared to ports in Belgium and other countries where discounts don’t exist.

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Source: Engine.online