Bio-premiums over conventional fuels inch lower

Lisbon B30-VLSFO premium over Rotterdam at $70/mt

Singapore shifts to a premium over Khor Fakkan

Rotterdam

The B30-VLSFO HBE price in Rotterdam has held mostly steady, edging up by $3/mt in the past week. Its B30-LSMGO HBE grade has followed a similar trend, rising by just $2/mt.

A $5–6/mt increase in ENGINE’s LSMGO and VLSFO benchmarks, along with a slight $1/mt decline in the Dutch HBE rebate for B30 biofuel, have supported these modest gains. However, a $7/mt decline in PRIMA Markets’ POMEME CIF ARA barge price has limited further gains.

The port’s B30-LSMGO HBE and B30-VLSFO HBE blends now stand at premiums of $151–193/mt over pure conventional fuels, each down by $3/mt over the past week.

The ARA region’s UCOME-based B30-VLSFO price has also remained largely stable, ticking up by just $2/mt. This gain was tempered by a $7/mt drop in PRIMA’s UCOME barge price, which offset the rise in VLSFO.

B30-VLSFO UCOME was indicated at $857/mt in the Port of Lisbon earlier this week, a $73/mt premium over the ARA price on that day.

Singapore

Singapore’s B24-VLSFO UCOME benchmark has also held relatively steady, increasing by just $2/mt in the past week.

The modest gain has been supported by a $6/mt rise in Singapore’s pure VLSFO price, but a $10/mt drop in PRIMA-assessed UCOME FOB China cargo price has capped further upside.

ENGINE’s freight estimate for UCOME shipments from China to Singapore has remained largely unchanged, ticking up by $0.50/mt to $16.50/mt.

B24-VLSFO UCOME was indicated at $670/mt at UAE’s Khor Fakkan port earlier this week, down by a considerable $48/mt from the prior week. The port’s benchmark flipped to a $7/mt discount to Singapore on the day, compared to a $37/mt premium recorded the week before.

Fujairah’s B24-VLSFO UCOME price was indicated at $716/mt earlier this week, a $27/mt premium over Singapore on the day.

Other bio-bunker news

Spanish bunker fuel supplier Moeve (formerly Cepsa) will supply 40,000 mt of pure biofuel to ferry operator Armas Trasmediterránea in the ports of Tenerife and Las Palmas through 2025. This will mark its first bio-bunker deliveries in the Canary Islands, the supplier said.

Moeve already supplies biofuels for bunkering in the Spanish ports of Algeciras, Barcelona, Ceuta and Huelva.

By Konica Bhatt

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