Singapore and Rotterdam saw biofuel price drops, with Singapore’s B24-VLSFO and B24-LSMGO UCOME prices falling due to declines in conventional fuels, while Rotterdam’s biofuel prices followed similar downward trends, reports Engine.online.
Singapore
Singapore’s B24-VLSFO UCOME price has dropped by $24/mt in the past week, while its B24-LSMGO UCOME price has seen a steeper decline of $41/mt. Both bio-benchmarks have declined amid a drop in values of pure VLSFO and LSMGO. The sharper $52/mt fall in the underlying ENGINE conventional LSMGO price has contributed to the more pronounced decline in the B24-LSMGO UCOME price.
The PRIMA Markets-assessed UCOME FOB China benchmark fell by $5/mt on the week to $955/mt. It says pricing activity for Chinese UCOME FOB in bulk was mostly muted last week. “With the open market being quiet for pricing activity, there were muted indications through [last] Thursday,” PRIMA says.
Singapore’s B24-VLSFO UCOME premium over pure VLSFO has widened by $6/mt in the past week to $112/mt, while its B24-LSMGO UCOME premium over pure LSMGO has widened by $11/mt to $105/mt.
Rotterdam
Rotterdam’s B30-VLSFO HBE price has come down by $19/mt over the past week and its B30-LSMGO HBE price has dropped by $30/mt. Decreases in the values of pure VLSFO ($23/mt) and pure LSMGO ($38/mt) have contributed to the decline in both biofuel benchmarks.
The Dutch HBE A ticket price has held steady in the past week. PRIMA assessed the ticket price at €8.60/GJ ($9.50/GJ) on Friday, a marginal increase of €0.05/GJ($0.06/GJ) on the week. The ticket price is crucial as it determines how much Dutch bunker suppliers can reclaim from authorities when selling advanced biofuels to ships. It theoretically translates to about $85/mt a supplier can reclaim for B30-VLSFO HBE sold in Dutch ports.
The ARA VLSFO UCOME price has declined in tandem with B30-VLSFO HBE Rotterdam in the past week. UCOME-based biofuel blends are priced higher as they don’t qualify for Dutch advanced biofuel rebates.
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Source: Engine.online
