Fuel Market Dynamics In Rotterdam And Singapore: HSFO Takes The Lead

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  • Rotterdam is experiencing a shift in its fuel market as High Sulfur Fuel Oil (HSFO) becomes the most affordable option, benefiting scrubber-fitted ships.
  • Ships using HSFO can enjoy cost savings due to the lower price compared to other fuels.

LNG prices in Rotterdam have increased significantly, approaching parity with HSFO. For ships sailing from Rotterdam to another EU port, LNG retains a price advantage over other fuel types. The price difference between LNG and B24-VLSFO in Rotterdam has narrowed substantially, but LNG remains the more favorable option.

VLSFO Benchmark Prices Decline

The VLSFO benchmark price in Rotterdam has fallen by $11/mt over the past week. Availability is normal, with lead times of 4-5 days. In Singapore, VLSFO benchmark prices have also declined, with improved prompt availability and lead times of 4-8 days.

Biofuel Prices Fluctuate

Biofuels in Rotterdam have seen a decrease in B24-VLSFO HBE bunker prices, reflecting market shifts in POMEME-based biofuels. In Singapore, B24-VLSFO UCOME bunker prices have also experienced a slight decrease, potentially influenced by changes in Chinese UCO prices.

LNG Bunker Benchmark Surges in Rotterdam

The LNG bunker benchmark in Rotterdam has surged due to a spike in the NYMEX Dutch TTF Natural Gas benchmark and increased delivery costs. Conversely, Singapore’s LNG bunker benchmark prices have fallen, despite an uptick in the underlying JKM gas benchmark, due to a reduction in delivery costs.

Overall, Rotterdam’s fuel market dynamics have shifted towards HSFO as the most economical option, while LNG prices experience significant changes. Singapore’s market sees declining VLSFO prices and improved prompt availability. Biofuel prices fluctuate in both regions due to changing supply and market conditions.

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Source: Engine Online