Changes in weekly bio-bunker prices (ENGINE-PRIMA Markets):
- Singapore’s B24-VLSFO UCOME up by $14/mt to $752/mt
- Singapore’s B24-LSMGO UCOME up by $21/mt to $870/mt
- Rotterdam’s B30-VLSFO HBE up by $24/mt to $768/mt
- Rotterdam’s B30-LSMGO HBE up by $24/mt to $901/mt
- Rotterdam’s B30-VLSFO UCOME up by $26/mt to $857/mt
- Rotterdam’s B30-LSMGO UCOME up by $31/mt to $990/mt
Singapore
Singapore’s B24-VLSFO and B24-LSMGO UCOME benchmarks have gained $14-21/mt in the past week. The prices have risen amid a $10/mt increase in UCOME FOB China, which is up despite weak demand because of the EU’s anti-dumping investigation, PRIMA Markets reports.
Singapore’s B24 price gains have been outpaced by Rotterdam’s B30 HBE prices, to widen Singapore’s B24-VLSFO discount to $16/mt, and its B24-LSMGO discount to $31/mt. 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.
The premium of B24-VLSFO over pure VLSFO is about $94/mt, while the premium for B24-LSMGO over pure LSMGO is $57/mt.
Rotterdam
Rotterdam’s B30-VLSFO and B30-LSMGO HBE prices have made big weekly gains again, both adding $24/mt on the week. Biofuel price premiums over pure conventional fuels are $146/mt for B30-VLSFO blends and $89/mt for B30-LSMGO blends.
The ticket price for advanced HBE has gone up from €9.00/GJ ($9.74/GJ) to €9.25/GJ ($10.01/GJ) and resulted in a $2/mt greater rebate for B30 blends sold in the Netherlands. The rebate is now around $88/mt and makes it lucrative to bunker advanced biofuel blends in Dutch ports compared to ports in Belgium and other countries where discounts don’t exist.
A 300 mt B30-LSMGO HBE stem was fixed in Rotterdam for a $1,000/mt with a lead time of 10 days. That was almost $100/mt higher than the ENGINE-PRIMA benchmark.
Biofuel bunker demand has been stable in the spot market, a source says, while another source has not seen any demand recently.
Rotterdam’s B30-VLSFO and B30-LSMGO UCOME prices have rallied $26-31/mt higher amid a $24/mt gain in PRIMA Markets’ underlying UCOME FOB ARA benchmark. PRIMA says the UCOME market is bullish as suppliers “price in the expected absence of Chinese biodiesel imports starting from next month.”
B24-VLSFO UCOME has been indicated about $30/mt lower in Gibraltar than B30-VLSFO UCOME has been indicated at in Rotterdam.
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Source: Engine
