Biofuel Bunker Snapshot: Bio-VLSFO prices up across major ports

Singapore bio premium narrows towards $100/mt

Rotterdam bio premium steady at around $180/mt

Singapore

Singapore’s B24-VLSFO price has gained on the back of a $27/mt jump in the underlying ENGINE conventional VLSFO price. VLSFO has gone up sharply despite a $1.22/bbl drop in front-month Brent crude values, and instead been driven higher by tight VLSFO availability.

Tight barge availability has put pressure on VLSFO bunker supply in the port, a source said. Lead times of up to 10-13 days are now recommended by several suppliers. Some suppliers can deliver stems with shorter lead times, but these stems are usually priced higher.

For the bio component of the B24-VLSFO blend meanwhile, PRIMA Market’s underlying UCOME FOB China price has held steady at $960/mt. The freight rate from China to Singapore for an MR tanker has come off by $1.75/mt.

The bio premium has gone down. B24-VLSFO is now priced $106/mt over pure VLSFO, down from $113/mt a week ago.

Rotterdam

Rotterdam’s B30-VLSFO HBE bunker price has made a solid gain of $13/mt on the week, supported by increases for both POMEME biofuel and conventional VLSFO.

PRIMA Market’s POMEME CIF ARA price has risen by $13/mt, while ENGINE’s conventional VLSFO price has come up by $15/mt.

A strengthening Dutch HBE A ticket price can make B30-VLSFO HBE blend prices more attractive, and PRIMA assessed the ticket price up by €0.20/GJ ($0.22/GJ) to €8.55/GJ ($9.46/GJ). That increase translates to a $2/mt higher theoretical rebate for B30-VLSFO. 

“This demonstrates a gathering momentum as the market steadily approaches the levels observed in April,” PRIMA commented.

Rotterdam's B24-VLSFO premium over pure VLSFO has kept roughly steady on the week, at $181/mt.

By Erik Hoffmann

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