Lower ARA bio-blend prices defy expectations

Volatile Chinese UCOME prices

Falling POME- and UCO-based wholesale biofuel prices

Rotterdam

The price of B30-VLSFO HBE has come down in Rotterdam in the past week. A $23/mt drop in the underlying PRIMA Market’s POMEME price has weighed on the B30 benchmark. So has an $8/mt rise in the PRIMA-assessed HBE rebate for B30 blends. These two downward pressures have only been partly countered by a $13/mt gain for pure VLSFO.

Pure LSMGO has risen by a steeper $23/mt on the week to push Rotterdam’s B30-LSMGO HBE price out of the red and to a slight $2/mt gain.

The story has been similar for B30 UCOME blends in the ARA, with PRIMA’s underlying UCOME FOB ARA price down $23/mt and the B30 blend prices drawing some support from rising prices for pure VLSFO and LSMGO.

Singapore

Singapore’s B24 UCOME prices are up amid rising VLSFO and LSMGO values, and a $0.25/mt uptick in the estimated freight rate for an MR tanker to carry UCOME from China to Singapore. China is a major source of UCO-based biofuel for Singapore.

The B24 UCOME price has gone up despite a drop in PRIMA’s underlying UCOME FOB China price.

Chinese exporters have continued to find outlets in Singapore and other bunker markets lately, but prices have been all over the place, PRIMA says. It argues that the lead-up to the Chinese New Year, and the cancellation of a 13% tax rebate from 1 December, have led prices to be volatile.

By Erik Hoffmann

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