Biofuel Bunker Snapshot: Sharp Gains For ARA Bio-Bunker Prices

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Singapore

B24-VLSFO has gained $13/mt in Singapore in the past week, which outcompetes its B24-LSMGO grade but is still far off the price gains we have seen in the ARA in the past week.

A B24-VLSFO deal was reported on Monday at $729/mt, or $8/mt below the benchmark from Friday. No further details of the stem’s size or lead time are known, but it was priced considerably lower than another indication of $745/mt in the market.

B24-VLSFO is also offered for bunkering in China’s Guangzhou and has been indicated at premiums of around $10/mt above Singapore’s price.

Singapore’s B24-VLSFO price premium over its considerably more popular pure VLSFO grade has narrowed by $3/mt on the week, to $107/mt. Without ulterior incentives to opt for biofuel than price, this is a tough proposition for most buyers.

Rotterdam

Biofuel bunker blend prices in Rotterdam and other ARA ports are up by $20-21/mt with support from rising values for both conventional (+$19-20/mt) and bio (+$23/mt) components.

PRIMA has assessed HBE A tickets steady at €8.15/GJ ($8.75/GJ) since 20 June. This ticket price is important because it helps determine how much Dutch bunker suppliers can claim back from their authorities when they sell advanced biofuel to ships.

Suppliers in Gibraltar and Algeciras are not allowed to carry blends with more than 25% biofuel in barges, unless they are special IMO Type 2 chemical tankers. And there are no government subsidies for biofuels on the EU’s advanced list. UCOME-based B24-VLSFO is therefore a go-to biofuel bunker grade, and it has risen by $19/mt in the past week.

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Source: Engine.online