Biofuel Bunker Snapshot: Higher Dutch rebates weigh on bio-bunker prices

HBE rebate for marine B100 jumps by $46/mt

Rangebound B30 prices in Singapore

Fujairah's B30-VLSFO at parity with Singapore's

Rotterdam

Rotterdam’s HBE-rebated B30-VLSFO benchmark has fallen by $10/mt in the past week. The fall has come amid a $42/mt drop in the Prima Markets' assessed ARA POMEME barge benchmark, which had risen sharply in the previous week.

A $14/mt rise in Prima's assessed Dutch HBE rebate for marine B30 blends has added some downward pressure on prices, while a modest $3/mt gain in conventional VLSFO has counterbalanced some of the decline.

Higher HBE ticket prices have had an even greater impact on pure B100 biofuel.

Prima’s Dutch HBE rebate for marine B100 has climbed by $46/mt, pushing Rotterdam’s HBE-rebated B100 (HBE) price down by roughly $47/mt on the week.

Across the wider ARA region, B30-VLSFO (UCOME) and B30-LSMGO (UCOME) prices have dropped by $11-16/mt, tracking a $42/mt fall in Prima's UCOME barge benchmark. Prima attributed the weakness in UCOME to “faltering” gasoil prices.

Singapore

Singapore’s UCOME-based B30 bunker prices have not moved much this week.

Singapore’s B30-VLSFO (UCOME) price has inched up by $1/mt, while its B30-LSMGO (UCOME) price has edged $5/mt.

Downward pressure has come from weaker conventional VLSFO and LSMGO prices, which have come down by $6-7/mt on the week.

Prima's UCOME FOB China cargo price has held steady at $1,165/mt, while the freight rate for UCOME cargo shipments from China to Singapore has edged $1.50/mt higher to $17.75/mt.

“Discussions in the Chinese waste-based biodiesel market remained mute on Thursday,” Prima reported, adding that “latest representative offer” for Chinese UCOME was indicated at $1,180/mt last week, which was a $15/mt premium over the current benchmark.

Elsewhere in Asia, prompt availability of B30-VLSFO is tight in southern South Korean ports. A supplier's earliest delivery date is seven days out for the grade. B30-VLSFO is priced roughly $15-20/mt higher in southern South Korean ports than in Singapore.

In the Middle East, Fujairah’s B30-VLSFO price of $726/mt is at parity with Singapore's.

By Konica Bhatt

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