Singapore bio-bunker sales climb

Fujairah’s B24-VLSFO at $47/mt premium over Singapore

B30-LSMGO HBE price soars in Rotterdam

Singapore

Singapore's B24-VLSFO UCOME price has risen by $69/mt and B24-LSMGO UCOME has increased by $37/mt over the past week.

Gains of $45–49/mt in ENGINE's pure VLSFO and LSMGO benchmarks have bolstered biofuel bunker prices, with higher bio-bunker demand giving an extra push to the B24-VLSFO benchmark.

Singapore’s bio-blended bunker sales rose to 139,000 mt in May, up 25% from 111,000 mt in April.

Bio-VLSFO sales (mostly B24 blends) increased by 20,000 mt in May to reach 96,000 mt, making up the bulk of total bio-bunker sales. Bio-HSFO sales made up the around 41,000 mt, and bio-LSMGO blends 2,000 mt.

Prima Markets’ UCOME China FOB cargo price has remained unchanged in the past week. Singapore’s B24-VLSFO premium over pure VLSFO has increased by $24/mt, to $189/mt in the past week.

Fujairah's B24-VLSFO UCOME was indicated at $760/mt earlier this week, a $47/mt premium over Singapore’s price on that day.

Rotterdam

HBE-rebated B30-VLSFO in Rotterdam has surged by $48/mt over the past week. B30-LSMGO has seen an even sharper increase of $78/mt as gasoil prices in particular have rallied on potential supply disruptions from the Israel-Iran war.

A significant portion of these gains can be attributed to $37–78/mt rises in conventional VLSFO and LSMGO benchmark prices. The steep $57/mt climb for the POMEME CIF ARA barge price assessed by Prima Markets has added further upward pressure.

The Prima-assessed HBE rebate for B30 has dropped by a modest $7/mt and added some to the bio-bunker prices.

Rotterdam’s B30-VLSFO UCOME and B30-LSMGO prices have climbed by $45/mt and $71/mt, respectively, supported by a $57/mt increase in Prima-assessed UCOME FOB ARA barge price.

B30-VLSFO UCOME was indicated at $922/mt in the Port of Lisbon earlier this week. Lisbon had the grade at a $83/mt premium over ARA that day, a $3/mt gain on the week.

Gibraltar’s B30-VLSFO UCOME has been indicated at $815/mt, a $35/mt discount to the ARA. Algeciras' B30-VLSFO UCOME stood at a $6/mt premium over ARA’s price.

Other bio-bunker news

European farmers coalition Copa and Cogeca has raised concerns that the European Union’s Renewable Energy Directive (RED) has opened the door for “fraudulent” feedstocks to enter the bloc’s biofuel supply chain.

ENGINE has received indicative prices for B30-VLSFO UCOME in Argentinian upriver ports at $1,190/mt, which is significantly higher than prices in the ARA and Singapore.

By Konica Bhatt

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