Biofuel Bunker Snapshot: Spot Demand Remains Low In Singapore

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Singapore

Singapore’s B24-VLSFO UCOME and B24-LSMGO UCOME prices have gained by $10–11/mt in the past week. Spot bio-bunker demand remains low in Singapore, with most stems being booked for term supply contracts, two sources say. These term contracts are mostly for container lines.

Some European buyers are shying away from Chinese biodiesel, and this is an important outlet for Chinese sellers, who have taken a hit. Uncertainty around the EU’s anti-dumping provisions on Chinese biodiesel imports have dented demand, PRIMA Markets said.

Singapore’s B24-VLSFO price premium over pure VLSFO has narrowed by $3/mt on the week, to $104/mt.

B24-VLSFO is priced about $15/mt lower in Singapore than in Guangzhou, and $34/mt lower than in Hong Kong.

Rotterdam

Rotterdam’s B30-VLSFO HBE price has shot up by $21/mt in the past week. The benchmark’s steep gain has been supported by rising values of pure VLSFO (+$15/mt) and bio (+$40/mt) components.

PRIMA has assessed HBE A tickets steady at €8.25/GJ ($8.84/GJ) since 27 June, which equates to HBE credits worth $79/mt for advanced B30 blends sold in the Netherlands. 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.

Biofuel price premiums over pure conventional fuels in Rotterdam are $200/mt for B30-VLSFO HBE blends and $141/mt for B30-LSMGO HBE blends. These premiums have widened by $6-9/mt on the week and are much wider than in Singapore.

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Source: Engine.online