Biofuel Bunker Snapshot: Dutch biofuel rebates rise

Prices are up in Singapore and Rotterdam

Bio premiums narrow in Rotterdam

Singapore

Singapore’s B24-VLSFO UCOME price has increased by $7/mt in the past week, while its B24-LSMGO UCOME price has risen by a greater $28/mt. The sharper $30/mt increase in the underlying ENGINE conventional LSMGO price has contributed to the more pronounced rise in the B24-LSMGO UCOME price.

The increase in the underlying China UCOME FOB price has further boosted prices of the two biofuel benchmarks. PRIMA Markets assessed the UCOME FOB China benchmark at $970/mt on Friday, up by $20/mt on the week.

Some Chinese traders anticipate that the restart of Neste’s biorefinery in Singapore could boost demand for Chinese bio feedstock, PRIMA said. The delay in restarting the 2.6 million mt/year capacity biorefinery has contributed to a slowdown in demand from China. “There were no wider details as to why the biorefinery restart is delayed, or when it is expected to resume operations,” PRIMA commented.

Singapore’s B24-VLSFO UCOME premium over pure VLSFO has widened by $4/mt in the past week to $114/mt, while its B24-LSMGO UCOME premium over pure LSMGO has narrowed by $2/mt to $95/mt.

Rotterdam

Rotterdam’s B30-VLSFO and B30-LSMGO HBE prices have increased marginally, both adding $9/mt on the week.

An increase in underlying PRIMA Market’s palm oil mill effluent methyl ester (POMEME) has supported both biofuel benchmarks. PRIMA Market’s POMEME CIF ARA price has risen by $7/mt to $1,428/mt.

The Dutch HBE A ticket price continues to climb. PRIMA assessed the ticket price at €9.60/GJ ($10.49/GJ) on Friday, up from €9.20/GJ ($10.05/GJ) a week prior. “This increase was driven by heightened fluctuations of FAME, which bolstered the upward momentum in the market,” PRIMA said.

This increase equates to a $93/mt theoretical rebate for B30-VLSFO HBE blends sold in Dutch ports, up by $3/mt from $90/mt a week ago.  

Biofuel price premiums over pure conventional fuels are $195/mt for B30-VLSFO HBE blends and $157/mt for B30-LSMGO HBE blends. These premiums have narrowed by $5-6/mt in the past week.

Rotterdam’s B30-VLSFO UCOME price premium over B30-VLSFO HBE has widened by $3/mt to $87/mt. Unlike POMEME-based biofuel blends, UCOME blends don’t qualify for Dutch advanced biofuel rebates, making them less attractive.

By Nithin Chandran

Please get in touch with comments or additional info to news@engine.online