Biofuel Bunker Snapshot: Spot Demand Drop In Singapore

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  • Biofuel prices steady in Singapore
  • Singapore’s B24-VLSFO premium over pure VLSFO widens again

Biofuel bunker spot demand drops in Singapore, reports Engine.

Singapore

Singapore’s B24-VLSFO UCOME price has inched $4/mt higher in the past week. It has flipped from a rare $1/mt discount to Rotterdam’s B30-VLSFO HBE noted last week to a $14/mt premium now. These are of course different blend ratios, but they represent the lowest-priced typical biofuel blends in the world’s two biggest bunker ports for comparison.

Bio-bunker prices in Singapore have remained steady in the past week despite slow demand. Overall demand for bio-bunkers has been sluggish in the spot market, a trader says. Lead times for bio-bunker grades vary between 10-14 days among suppliers.

The premium of B24-VLSFO over pure VLSFO has widened by $30/mt to $101/mt in the past week, while the premium of B24-LSMGO over pure LSMGO has widened by $34/mt to $75/mt.

The Chinese UCOME FOB price has shed $5/mt on the week to $1,020/mt, according to PRIMA Markets. UCOME prices dipped as used cooking oil (UCO) prices in China weakened amid limited international demand, PRIMA said.

Rotterdam

Rotterdam’s B30-VLSFO HBE price has declined $11/mt in the past week, while its B30-LSMGO HBE price has inched $2/mt lower. Biofuel price premiums over pure conventional fuels are $142/mt for B30-VLSFO blend and $91/mt for B30-LSMGO blend.

The 2024 ticket price for advanced HBE has gone up from €8.60/GJ ($9.27/GJ) to €8.75/GJ ($9.43/GJ) and resulted in a $1/mt greater rebate for B30 blends sold in the Netherlands. The rebate is now around $84/mt, which is lower than the $91/mt rebate noted in early April. But it is still lucrative to bunker advanced biofuel blends in Dutch ports compared to ports in Belgium and other countries where discounts don’t exist.

Rotterdam’s B30-VLSFO UCOME price has remained steady in the past week, while the B30-LSMGO UCOME price has increased by $9/mt. Prices have been largely steady despite a $15/mt drop in PRIMA Markets’ underlying UCOME FOB ARA benchmark.

Gibraltar’s B24-VLSFO UCOME has been indicated about $3/mt lower than Rotterdam’s B30-VLSFO UCOME in the past week.

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Source: Engine

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