Biofuel Bunker Snapshot: Bio premiums narrow in Singapore and Rotterdam

Singapore sold less bio-bunkers in April

Singapore’s biofuel price premiums over conventional grades narrow   

Dutch HBE market remains stagnant  

PHOTO: Aerial view of the Singapore container terminal. Getty Images

Changes in weekly bio-bunker prices (ENGINE-PRIMA Markets):

• Singapore’s B24-VLSFO UCOME down by $11/mt to $717/mt
• Singapore’s B24-LSMGO UCOME down by $11/mt to $800/mt
• Rotterdam’s B30-VLSFO HBE down by $9/mt to $705/mt
• Rotterdam’s B30-LSMGO HBE down by $10/mt to $822
• Rotterdam’s B30-VLSFO UCOME down by $8/mt at $779/mt
• Rotterdam’s B30-LSMGO UCOME down by $9/mt to $896/mt

Singapore

Singapore’s B24-VLSFO and B24-LSMGO UCOME benchmarks have come down in the past week, both declining by $11/mt. The prices have come down amid a $30/mt drop in UCOME FOB China price, which is under pressure because of weak demand from the EU.

Singapore’s B24-VLSFO is priced about $12/mt higher than Rotterdam’s B30-VLSFO HBE. 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.

Biofuel price premiums over pure conventional fuels are $94/mt for B24-VLSFO blend and $68/mt for B24-LSMGO. These premiums have narrowed by $7/mt in the past week.

Around 60,000 mt of bio-blended bunkers were sold in April, down from 66,000 mt in March, according to preliminary figures from the port authority. Total biofuel bunker sales across the first four months of this year stood at 187,000 mt, significantly higher than around 123,000 mt sold in the same period last year.

But biofuel blends only make up a fraction of Singapore's total bunker sales. Just 1.4% of its total bunker sales were blended with biofuels in April.

Rotterdam

Rotterdam’s B30-VLSFO and B30-LSMGO HBE benchmarks have declined by $9–10/mt over the past week. PRIMA-assessed POMEME price in the ARA has declined by $25/mt to $1,298/mt in the past week. This has partly contributed to the decline in bio-bunker prices in Rotterdam. POMEME-based biofuels can qualify for advanced biofuel rebates through the Dutch HBE system.

Biofuel price premiums over pure conventional fuels are $134/mt for B30-VLSFO HBE blend and $84/mt for B30-LSMGO HBE blend. These premiums have narrowed by $7-8/mt in the past week.

The 2024 ticket price for advanced HBE has been steady at €8.75/GJ ($9.51/GJ) in the past week. The rebate is around $84/mt for B30 blends sold in the Netherlands, which makes it still lucrative to bunker advanced biofuel blends in the Dutch ports compared to ports in other countries where discounts don't exist.

“The Dutch HBE market remained stagnant the entire week, with tickets of the A category sitting unchanged WoW at €8.75/GJe, given the generalised lack of demand and trading appetite,” PRIMA Markets stated.

Rotterdam’s B30-VLSFO and B30-LSMGO UCOME benchmarks have declined by $8–9/mt in the past week. Bio-bunker demand was mostly quiet in the past week, a trader said.  

By Nithin Chandran

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