- UCOME and HBE Fuels See Mixed Trends Across Singapore and Rotterdam.
- Biofuel Prices Rise in Singapore Amid Strong Market Activity.
- Volatility in Rotterdam’s Biofuel Market as Rebates Fluctuate.
Singapore and Rotterdam reflected opposite directions where Singapore had a middle-line increase, while Rotterdam had higher price volatility. Singapore remained the main destination for trade in UCOME, while the rebate system remained a prominent driver of pricing in the European market, reports Engine.
Singapore Biofuel Price Trends
In Singapore, biofuel prices increased steadily last week. B24-VLSFO UCOME rose by $7/mt, whereas B24-LSMGO UCOME gained $18/mt. This was helped by a rise of $9/mt in pure VLSFO vehicle fuel and a $23/mt increment in pure LSMGO prices. Singapore continues to be a leading participant in the UCOME market, with PRIMA Markets reporting UCOME FOB China bulk offers at $1,020/mt. The B24-VLSFO UCOME premium over pure VLSFO decreased by $2/mt to $133/mt. The B24-LSMGO UCOME premium over pure LSMGO also dropped by $5/mt to $107/mt. These trends indicate a market where premium prices exhibit a strong correlation with fuel price and consumption trends.
Rotterdam Biofuels Price Trends
In Rotterdam, biofuel prices remain unstable due to undetermined rebates and UCOME price fluctuations. B30-VLSFO HBE advanced $13/mt, while B30-LSMGO HBE increased $25/mt, largely from a $21/mt increase in LSMGO.
The Dutch HBE A ticket price fluctuated significantly, reaching €23/GJ ($24.05/GJ) early in the week and falling to €17.50/GJ ($18.30/GJ) by Friday. This meant a theoretical rebate of $163/mt for B30-VLSFO HBE blends in Dutch ports.
This figure is off last week’s rebate of $210/mt, but still higher than April’s $90/mt, a sign that rebate structures continue to fluctuate and have a ripple effect on the market. After PRIMA’s UCOME FOB ARA price dropped $125/mt, the B30-VLSFO UCOME price fell to $35/mt. Still, B30-VLSFO UCOME was pricier than B30-VLSFO HBE by $157/mt because UCOME blends do not get Dutch rebates like POMEME fuels.
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Source: Engine
