Biofuel Bunker Snapshot: Spot demand remains low in Singapore

UCOME price holds steady in China

Rotterdam bio-bunker prices gain

Availability good in the ARA hub

Singapore

Singapore’s B24-VLSFO UCOME and B24-LSMGO UCOME prices have gained by $10–11/mt in the past week. Spot bio-bunker demand remains low in Singapore, with most stems being booked for term supply contracts, two sources say. These term contracts are mostly for container lines.

There is not much spot demand in Singapore at the moment, a trader said. Another trader noted that while there is some interest in bio-bunkers, bunker buyers are not confirming orders yet.

Some European buyers are shying away from Chinese biodiesel, and this is an important outlet for Chinese sellers, who have taken a hit. Uncertainty around the EU's anti-dumping provisions on Chinese biodiesel imports have dented demand, PRIMA Markets said.

PRIMA assessed UCOME FOB China at $970/mt on Friday, unchanged on the week. Low UCOME prices from China, a key regional bio feedstock and biofuel exporter, can influence bio-bunker prices in Singapore and China.

Singapore’s B24-VLSFO price premium over pure VLSFO has narrowed by $3/mt on the week, to $104/mt.

B24-VLSFO is priced about $15/mt lower in Singapore than in Guangzhou, and $34/mt lower than in Hong Kong.

Rotterdam

Rotterdam’s B30-VLSFO HBE price has shot up by $21/mt in the past week. The benchmark’s steep gain has been supported by rising values of pure VLSFO (+$15/mt) and bio (+$40/mt) components.

PRIMA has assessed HBE A tickets steady at €8.25/GJ ($8.84/GJ) since 27 June, which equates to HBE credits worth $79/mt for advanced B30 blends sold in the Netherlands. This ticket price is important because it helps determine how much Dutch bunker suppliers can claim back from their authorities when they sell advanced biofuel to ships.

Bio-bunker demand continues to be slow in Rotterdam and in the wider ARA hub, two sources said. Availability has been good, with prompt deliveries also possible, a trader said.

Rotterdam’s B30-VLSFO UCOME price has gained by $22/mt in the past week, while its B30-LSMGO UCOME price has gained by $13/mt. The PRIMA-assessed UCOME FOB price in the ARA has gained by $40/mt to $1,413/mt in the past week.

Biofuel price premiums over pure conventional fuels in Rotterdam are $200/mt for B30-VLSFO HBE blends and $141/mt for B30-LSMGO HBE blends. These premiums have widened by $6-9/mt on the week and are much wider than in Singapore.

B24-VLSFO UCOME was indicated at $819/mt in Gibraltar and Algeciras on Friday, around $15/mt higher on the week.

By Nithin Chandran

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