B100 shifts to $8/mt premium over HSFO

B100’s discount to VLSFO narrows by $23/mt

LBM’s discount to B100 widens in Rotterdam

All bunker prices mentioned below have been adjusted for calorific contents to make them VLSFO-equivalent. They have estimated EU compliance costs for EU–EU voyages included. These account for EU ETS costs and FuelEU Maritime penalties, and our estimated compliance surplus values for FuelEU pooling. Rotterdam's B100 and LBM prices also factor in Dutch HBE rebates for advanced liquid and gaseous biofuels sold in the Netherlands.

Rotterdam’s B100 price has risen by $20/mt over the past week. The price increase has pushed B100 to an $8/mt premium over Rotterdam’s HSFO, reversing from a $13/mt discount a week ago.

Its discount to VLSFO has narrowed from $59/mt to $36/mt.

The European Commission has proposed to suspend recognition of the International Sustainability & Carbon Certification (ISCC-EU) scheme for waste-based biofuels for 2.5 years.

The ISCC body has warned that the EU’s “ad hoc and immature” proposal could severely disrupt the waste-based biofuels market if implemented. One shipping company told ENGINE that suspending ISCC certification without a clear replacement could be detrimental to the biofuel bunker market.

In the absence of an alternative certification system, shipowners may rush to secure additional biofuel stems in Rotterdam to ensure compliance with FuelEU Maritime and EU ETS regulations before ISCC Proof of Sustainability (PoS) documents are no longer recognised.

But there have not been any clear indications that the news has impacted biofuel prices in recent days.

For dual-fuel shipowners choosing between B100 and liquefied biomethane (LBM) in Rotterdam, LBM is now $116–251/mt cheaper than B100, depending on the methane slip of the engine used. That is an increase from the $85-220/mt discounts a week ago.

Liquid fuels

Singapore’s VLSFO price remained almost unchanged, with just a $1/mt gain over the past week. Lead times have increased to 4–10 days, up from 2–10 days.

Rotterdam’s VLSFO benchmark also held largely steady, edging $3/mt lower amid a slight improvement in VLSFO availability in the ARA region.

VLSFO bunker costs are now approximately 13–15% lower than they were in mid-January. Singapore’s VLSFO benchmark has dropped by nearly $100/mt over the past two months, nearing its lowest level in four years, according to Steve Christy, research contributor at Integr8 Fuels.

Rotterdam’s VLSFO has seen a smaller decline of about $70/mt over the same period.

The price drops are linked to the decline in front-month ICE Brent futures, which has fallen by $10/bbl ($73/mt) from its peak two months ago amid ongoing geopolitical concerns, Christy added.

Liquid gases

Rotterdam’s LNG bunker price has declined by $13/mt in the past week.

This decline is mainly due to a reduction in the estimated LNG bunker premium, which has dropped by around 7%, from approximately $128/mt to $119/mt.

Singapore’s LNG bunker price has recorded a larger $21/mt drop, extending its decline to six consecutive weeks. Progress in the US–Russia talks over the Ukraine war appears to have weighed on market sentiment, pushing prices lower.

By Konica Bhatt

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