Biofuel Bunker Snapshot: Lower feedstock costs weigh on Rotterdam’s B30-VLSFO price

Rotterdam's B30-VLSFO (POMEME) price has decreased by $36 per metric tonne over the past week, while the conventional VLSFO price has risen by $23 per metric tonne. The narrowing price premium between B30-VLSFO and conventional VLSFO has reduced from $59 to $96 per metric tonne. The prices of ARA UCOME and POMEME barge indicators, which reflect feedstock sourcing costs, have dropped by $57 per metric tonne each in the past week, bringing UCOME at a $70 discount to POMEME.

Lower feedstock costs likely influenced the decrease in B30-VLSFO price. Rotterdam's B30-LSMGO (POMEME) is priced at $1,360 per metric tonne, $87 less than the conventional LSMGO price. B100 is currently priced at $1,162 per metric tonne in Rotterdam, having fallen by $188 per metric tonne over the past month, while its LSMGO price has risen by $77 per metric tonne, widening B100's discount to LSMGO from $10 to $275 per metric tonne.

As a result, B100's discount to LSMGO for equivalent energy and considering EU Emissions Trading System (EU ETS) costs and FuelEU Maritime compliance has widened to $740 per metric tonne for a ship traveling from Rotterdam to another EU port. This price discrepancy has increased the demand for B100 in Rotterdam. Dutch suppliers can create ZRE A tickets for selling low-carbon fuels and trade them with other suppliers.

The prices of these tickets have dropped from €240 per metric tonne CO2e ($269 per metric tonne CO2e) last Thursday to €235 per metric tonne CO2e ($262 per metric tonne CO2e) this week. ZRE A tickets contribute to Rotterdam's biofuel prices being lower than those in other ports. Belgium lacks a similar mechanism. In neighboring Belgian port of Antwerp, B100 (UCOME) is priced at $1,973 per metric tonne today, $1 less than the previous week, which is $811 higher than Rotterdam's outright B100 price, before accounting for EU ETS and FuelEU costs.

In Portugal's Aveiro, B30-LSMGO price has decreased by $33 per metric tonne over the past week to $1,527 per metric tonne, and B100 price has fallen by a steeper $92 per metric tonne to $1,553 per metric tonne. Singapore's B30-VLSFO (UCOME) price has increased by $63 per metric tonne in the past week to $1,191 per metric tonne, while the conventional VLSFO price has risen by $58 per metric tonne over the same period, widening B30-VLSFO's premium over conventional VLSFO by $5 to $189 per metric tonne.

China UCOME cargo, a significant feedstock for Singapore's B30-VLSFO blend, has had its Prima Markets price assessment hold steady at $1,220 per metric tonne, unchanged from last week. Higher conventional VLSFO prices may have supported the blend's price. B100 is priced at $1,534 per metric tonne in Singapore today, rising by $41 per metric tonne over the past week.