Biofuel Bunker Snapshot: Dutch rebates for biofuels move closer to $150/mt
Sharp fall in bio-bunker prices in Rotterdam
Chinese UCOME FOB price continues to rise
Singapore
Singapore’s B24-VLSFO UCOME price has increased by $3/mt in the past week, while its B24-LSMGO UCOME price has dropped by $9/mt, influenced by a $13/mt drop in the underlying ENGINE conventional LSMGO price.
The diverging price moves have reduced the B24-LSMGO UCOME premium over B24-VLSFO UCOME, narrowing it from $75/mt to $63/mt.
Chinese UCOME price was mostly steady in the past week. The PRIMA Markets-assessed UCOME FOB China in bulk rose by $5/mt on the week to $985/mt. PRIMA expects a further increase in Chinese UCOME prices over the coming days, driven by higher production costs and pressure on refinery margins.
As UCOME is a key biofuel feedstock used for marine biofuel blending in Singapore, rising prices in China could add upward pressure on biofuel bunker prices in the port.
Biofuel premiums in Singapore have remained roughly steady, with B24-VLSFO UCOME blends priced $120/mt above pure VLSFO and B24-LSMGO UCOME priced at a $100/mt premium over pure LSMGO.
Rotterdam
Rotterdam’s B30-VLSFO HBE price has dropped by $32/mt, while its B30-LSMGO HBE price has declined by $26/mt.
PRIMA Market’s palm oil mill effluent methyl ester (POMEME) CIF ARA price has dropped by $10/mt to $1,449/mt. The decline in POMEME price has partly contributed to pull both biofuel benchmarks down.
The Dutch HBE A ticket price for 2024 was assessed at €14.90/GJ ($15.93/GJ) on Friday, up from €12/GJ ($13.08/GJ) a week ago. This increase translates to a theoretical rebate of $142/mt for B30-VLSFO blends sold in Dutch ports, up from $116/mt a week ago.
In contrast, Rotterdam’s B30-VLSFO UCOME price has declined by a more modest $5/mt in the past week. As a result, the port’s B30-VLSFO UCOME premium over the rebated B30-VLSFO HBE price has widened significantly from $110/mt to $137/mt. Unlike POMEME-based biofuels, UCOME-based blends don’t qualify for Dutch biofuel rebates. This rebate exclusion makes UCOME blends less attractive for bunkering.
By Nithin Chandran
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