Biofuel Bunker Snapshot: Most prices come off

Bio and fossil component prices generally down

Steady Dutch HBE rebates

Indonesia still enforcing POME and UCO export controls

Rotterdam

The price of B30-VLSFO with an HBE rebate has gone down by $9/mt in Rotterdam. The decline has come amid similar drops of $9/mt for pure VLSFO and $8/mt for PRIMA Market’s assessed POMEME CIF ARA barges. A roughly steady HBE rebate for B30 at $107/mt did not do much to move the needle.

The port’s B30-LSMGO HBE variant has shed $7/mt in the past week. A $6/mt decline in pure LSMGO has weighed on the price, in addition to the aforementioned POMEME drop.

B30 UCOME prices are down by a similar $7/mt on the week amid a $7/mt fall for UCOME FOB ARA barges assessed by PRIMA.

Indonesia has restricted exports of palm oil methyl ester (POME) and used cooking oil (UCO) feedstocks since the start of the year to be able to meet a domestic B40 blending target for diesel and gasoil, and reduce its reliance on fossil fuel imports. The country is the world’s largest producer and exporter of POME, which qualifies for Dutch marine biofuel subsidies through the HBE ticketing system.

The PRIMA-assessed POME FOB Indonesia cargo price have gone up from about $760/mt since October to $1,010/mt now. Back in September 2024, the Indonesian government raised export levies for POME and UCO, which put upward pressure on prices.

The more recent export controls that are now in place for POME and UCO mandates Indonesian exporters to seek approvals to export these products.

“The Indonesian Government is still showing no firm signs of lifting restrictions,” PRIMA has reported.

But ensuing price volatility for these feedstocks and a backlash from the local biofuel industry has prompted the government to reconsider the ban, PRIMA said.

Singapore

Singapore’s B24-VLSFO UCOME price has held steady along with unchanged pure VLSFO and UCOME FOB China cargo prices. A $2/mt rise in the freight rate for a Chinese UCOME cargo to Singapore has not done much to impact the port’s B24-VLSFO price.

B24-LSMGO is down by $8/mt in Singapore alongside a $10/mt drop in pure LSMGO.

China has seen rising UCO prices over recent months, and Indonesia's UCO cut-off has contributed to this, PRIMA said.

B24-VLSFO is now priced at a $174/mt premium over pure VLSFO in Singapore, while B24-LSMGO’s premium is somewhat smaller at $143/mt.

By Erik Hoffmann

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