Rotterdam’s B100 price rises sharply

B100’s discount to VLSFO remains steady in Rotterdam

LNG premiums over conventional fuels widen

All bunker prices mentioned below have been adjusted for calorific contents to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and non-EU-EU compliance costs included for Singapore. 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.

Sharp rises in both Rotterdam’s VLSFO and B100 prices have kept VLSFO premiums largely steady over the past week. Rotterdam’s VLSFO is now priced $162/mt above B100, a modest $1/mt increase from the previous week.

In Singapore, B100’s premium over VLSFO has narrowed by $32/mt to $496/mt, based on voyages to EU ports where 50% of emissions are counted.

LNG’s premium over liquefied biomethane (LBM) in Rotterdam has widened by $7/mt this week, to a range of $157–204/mt depending on engine type.

LNG’s premium over VLSFO in Rotterdam has increased by $17/mt to $127/mt for vessels with Otto medium-speed (Otto MS) engines. For vessels with diesel slow-speed (diesel SS) engines, LNG has dropped to a $38/mt discount to VLSFO, down from $55/mt last week.

Singapore's LNG premium over its VLSFO has widened by $4/mt to $99/mt for Otto MS engine vessels, and by $5/mt to $17/mt for diesel SS engine vessels.

Liquid fuels

VLSFO prices in Rotterdam and Singapore have risen by $19/mt and $11/mt, respectively, over the past week, following a sharp increase in the front-month ICE Brent futures contract.

Rotterdam’s B100 price has increased by $17/mt over the past week.

Prima Markets has assessed its POMEME CIF ARA barge price up by about $37/mt compared to a week ago. While biofuel bunker suppliers do not necessarily track POMEME prices when setting B100 bunker prices, a sharp rise in the region's feedstock costs could have influenced the overall market sentiment, potentially driving bio-bunker prices higher.

The Prima-assessed Dutch HBE rebate for marine B100 has jumped by $30/mt over the past week, reaching $420/mt.

Singapore’s B100 benchmark has declined by $21/mt over the same period.

Liquid gases

Rotterdam's LNG bunker price has surged by $36/mt over the past week. The increase has largely been driven by expectations of a resolution in US-China trade talks and concerns over tightening supply in the European market.

Singapore’s LNG benchmark has risen by a smaller $16/mt. Asian LNG prices more broadly have drawn support from growing Asian gas demand to generate power for air condition systems during warmer weather.

By Konica Bhatt

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