Biofuel Bunker Snapshot: Bio-bunkering pricier in both Rotterdam and Singapore

Bio-LSMGO prices sharply up

Smaller Dutch HBE rebates

Singapore bio-bunker sales steady

Rotterdam

Bio-bunker prices have risen across key grades in the ARA, drawing support from higher biofuel feedstock costs.

Rotterdam’s B30-VLSFO HBE price has climbed $14/mt higher despite a $6/mt drop in the price of pure VLSFO. B30-VLSFO HBE is now $203/mt pricier than pure VLSFO, which is a $20/mt bigger spread than a week ago.

The port’s B30-LSMGO HBE price has jumped $28/mt higher on the back of a $15/mt gain for pure LSMGO. The premium of B30-LSMGO HBE over pure LSMGO has widened by $13/mt in the past week, to $161/mt now.

The B30 benchmarks have risen despite an $8/mt decline in the HBE rebate assessed by PRIMA Markets. The estimated rebate now sits at $102/mt for advanced B30 bio-bunker blends sold in the Netherlands.

A $32/mt jump in the POMEME barge price has lifted both the B30-VLSFO and -LSMGO HBE blend benchmarks. Indonesian and Malaysian POME feedstock prices have strengthened, PRIMA said. Indonesia started restricting exports of used cooking oil (UCO) and palm oil mill effluent (POME) cargoes in January to support its new domestic B40 biodiesel blending mandate. The mandate went up from B35 on 1 January and has reportedly capped some export flows to Europe and other markets.

PRIMA’s assessed price for UCOME barges delivered in the ARA is also up by $32/mt on the week. This has supported prices for UCOME-based B30 VLSFO and LSMGO blends by similar amounts as Rotterdam’s HBE rebate-qualifying B30 blends.

Singapore

B24 UCOME are up by $8-12/mt in Singapore with support from rising VLSFO, LSMGO and UCOME input values, and a $1.25/mt gain in freight from China, which is at a four-week high of $18/mt.

Singapore’s pure VLSFO ($7/mt) and LSMGO ($12/mt) prices are up, and so is the UCOME FOB China ($10/mt) price assessed by PRIMA.

Singapore's bio-blended bunker sales increased by 1% in January after declining in the past two months. The port's bio-blended bunker sales totalled 108,000 mt, up from 106,000 mt in December. This was more than double the 45,000 mt sold in January last year.

Of the total biofuel sales, approximately 92,000 mt was VLSFO blended with a bio component, which in Singapore typically contains 24%, while 16,000 mt was HSFO blended with a bio component.

By Erik Hoffmann

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