Bio-bunker premiums narrow in Rotterdam

Gibraltar’s B30-VLSFO at $109/mt premium over ARA

Hong Kong's B30 priced $106/mt above Singapore

Rotterdam

The port’s B30-VLSFO (HBE) has slumped $67/mt lower in the past week, while B30-LSMGO (HBE) has dropped by $61/mt.

Most of the downward pressure comes from $38–48/mt falls in ENGINE-assessed pure VLSFO and LSMGO prices, along with a $37/mt decline in the Prima-assessed POMEME CIF ARA barge price.

Rotterdam’s bio-bunker premiums over conventional fuels have narrowed by $13-29/mt, to $184/mt over VLSFO and $129/mt over LSMGO.

UCOME-based B30-VLSFO and B30-LSMGO benchmarks in the wider ARA region have fallen by $39–44/mt, supported by a $37/mt drop in Prima’s UCOME FOB ARA barge price.

A $17/mt rise in the Prima-assessed marine HBE rebate for B30 has added further downward pressure.

B30-VLSFO UCOME prices in Gibraltar and Algeciras hit parity earlier this week, with both indicated at $782/mt.

ARA was priced $109/mt below Gibraltar on the same day, flipping from a $35/mt premium last week.

Singapore

B24-VLSFO UCOME has tumbled $73/mt lower in the past week, while B24-LSMGO UCOME has seen a much smaller $21/mt decline.

A $10/mt rise in the Prima-assessed UCOME China FOB cargo price has been outweighed by a $53/mt drop in ENGINE’s pure VLSFO benchmark.

China’s UCOME market remains muted, “following steeper bunkering trade,” Prima said.

B24-VLSFO UCOME was indicated at $787/mt in Hong Kong earlier this week, at a $106/mt premium over Singapore.

Fujairah’s B24-VLSFO UCOME was indicated at $730/mt, with its premium over Singapore narrowing by $4/mt to $43/mt.

Other bio-bunker news

"Availability of B100 and other bio-blends remains good in Rotterdam, with lead times recommended at 2-3 days," Nick de Haan, head of decarbonisation strategies at Burando Energies, told ENGINE.

Another supplier said recent strong demand has put pressure on barge availability and recommends at least seven days of lead time for B100 in Rotterdam.

The International Sustainability and Carbon Certification (ISCC) system has proposed 18 new measures to tighten biofuels certification under the EU’s Renewable Energy Directive (RED).

By Konica Bhatt

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