Biofuel Bunker Snapshot: Rotterdam’s B30-VLSFO price slumps despite higher feedstock costs

ZRE-A ticket prices drop

Rotterdam’s B30-LSMGO discount to LSMGO narrows

Singapore’s B100 price falls steeply during the week

ARA

Rotterdam’s B30-VLSFO (POMEME) price has dropped $133/mt in the past week, while the Dutch port’s conventional VLSFO price has fallen $77/mt over the same period.

This has narrowed Rotterdam’s B30-VLSFO's price premium over the price of conventional VLSFO by $56/mt to $40/mt. This, despite indications of higher feedstock costs.

Prima Markets’ ARA UCOME and POMEME barge prices, both indicators of feedstock sourcing costs, have each gained $66/mt in the past week, to $1,691/mt and $1,761/mt respectively. That leaves UCOME at a $70/mt discount to POMEME.

Lower conventional VLSFO prices most likely pressured Rotterdam’s B30-VLSFO price.

Rotterdam’s B30-LSMGO (POMEME) price has dropped by $70/mt to $1,290/mt, while the port’s conventional LSMGO price has fallen by a steeper $95/mt.

This has narrowed the blend’s discount to conventional LSMGO by $25/mt, to $62/mt.

B100 at the Dutch port has been priced at $1,163/mt in Rotterdam today, almost flat on the week.

Dutch suppliers can generate ZRE-A tickets for selling low-carbon fuels, which can be traded with other suppliers. The price of these tickets has dropped from €235/mtCO2e ($262/mtCO2e) last Thursday, to €215/mtCO2e ($241/mtCO2e) on Thursday this week.

These ZRE-A tickets help lower Rotterdam’s biofuel prices compared with other ports.

In neighbouring Belgium, which does not have a similar mechanism, Antwerp's B100 (UCOME) has been priced at $1,957/mt today, down $16/mt on the week, thus narrowing its premium over Rotterdam’s B100 by $17/mt, to $794/mt.

Asia

Singapore’s B30-VLSFO (UCOME) price has dropped $121/mt in the past week to $1,070/mt, while the port’s conventional VLSFO price has fallen a steeper $155/mt over the same period.

This has widened Singapore’s B30-VLSFO price premium over conventional VLSFO by $34/mt to $223/mt.

B100 has been priced at $1,349/mt in Singapore today, down $185/mt on the week. Lower VLSFO prices most probably pressured Singapore’s B100 price.

Singapore’s B100 price climbed almost every day from mid-October to a peak of $1,551/mt on 2 November. It then dropped $202/mt in just four days.

Prima Markets’ price assessment for China UCOME cargo, which is a key feedstock for Singapore’s B30-VLSFO blend, has gained $20/mt to $1,240/mt.

Hong Kong’s B30-VLSFO is priced at $1,026/mt, a $156/mt premium over the port’s conventional VLSFO price.

By Nachiket Tekawade

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