- Prices drop in Rotterdam
- Dutch rebates for biofuels continue to rise
Chinese UCOME prices rise due to waste oil costs, reports Engine.
Singapore
Singapore’s B24-VLSFO UCOME price has shed $3/mt in the past week, while its B24-LSMGO UCOME price has jumped by $29/mt amid a $36/mt increase in the underlying ENGINE conventional LSMGO price.
The PRIMA Markets-assessed UCOME FOB China benchmark rose by $10/mt on the week to $980/mt. “Rising waste oil prices in China are otherwise raising upstream production costs, which, even during periods of uncertainty for overseas UCOME trading prospects,” PRIMA said.
The Chinese UCOME price has increased for the second week in a row, rising from yearly lows recorded in mid-October. This uptick coincides with a gradual rise in UCOME demand for bunkering in Asian countries, PRIMA noted.
Singapore’s B24-VLSFO UCOME price is $54/mt lower than Rotterdam’s B24-UCOME price, yet it remains $34/mt higher than the rebated B24-VLSFO HBE price in Rotterdam.
A supplier has been particularly active in the spot market, recently securing a spot requirement, a source said. Details about the stem, including the quantity, remain unavailable at this time.
Several suppliers in Singapore determine their B24-VLSFO prices by adding a biofuel premium to the price of the VLSFO component, which is typically based on a FOB VLSFO cargo price. These premiums range from $140/mt to $160/mt.
Rotterdam
Biofuel benchmarks have declined in the past week, with Rotterdam’s B30-LSMGO HBE dropping by $11/mt and B30-VLSFO HBE falling by a sharper $14/mt. Decreases in the values of pure VLSFO ($19/mt) and pure LSMGO ($15/mt) have contributed to the decline in both biofuel benchmarks.
The Dutch rebates for biofuels continue to climb. PRIMA assessed the ticket price at €12/GJ ($13.08/GJ) on Friday, up from €10.70/GJ ($11.68/GJ) a week prior. This ticket price is critical as it determines how much Dutch bunker suppliers can reclaim from authorities when selling advanced biofuels to vessels. For B30-VLSFO HBE sold in Dutch ports, this means suppliers can reclaim about $116/mt, an increase of $13/mt from $103/mt a week prior.
In contrast to the B30-VLSFO HBE price, Rotterdam’s B30-VLSFO UCOME price has declined by just $1/mt. This slight decline in B30-VLSFO UCOME price has widened its premium over B30-VLSFO HBE from $97/mt to $110/mt. Since UCOME-based biofuel blends do not qualify for Dutch biofuel rebates, they are less attractive for bunkering than POMEME-based biofuels, which qualify for rebates.
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Source: Engine
