Biofuel Bunker Snapshot: Rotterdam’s B30-VLSFO price slumps despite higher feedstock costs

Rotterdam's B30-VLSFO price has decreased by $133 per metric ton in the past week, while conventional VLSFO prices have dropped by $77 per metric ton over the same period. This has reduced Rotterdam's B30-VLSFO premium over conventional VLSFO from $56 to $40 per metric ton. Despite this, feedstock sourcing costs have risen, with Prima Markets' ARA UCOME and POMEME barge prices each increasing by $66 per metric ton to $1,691 and $1,761 respectively, leaving UCOME $70 per metric ton cheaper than POMEME.

The decline in conventional VLSFO prices is likely the reason behind the lower B30-VLSFO price. Rotterdam's B30-LSMGO price has also decreased by $70 to $1,290 per metric ton, while conventional LSMGO prices have fallen by a larger $95 per metric ton. This has narrowed the discount to conventional LSMGO by $25 to $62 per metric ton.

B100 in Rotterdam is priced at $1,163 per metric ton, nearly unchanged from the previous week. Dutch suppliers can generate ZRE-A tickets for selling low-carbon fuels, which can be traded with other suppliers. The price of these tickets has dropped from €235 per metric ton CO2e to €215 per metric ton CO2e in the past week, helping to lower Rotterdam's biofuel prices compared to other ports.

In Belgium, Antwerp's B100 (UCOME) price is $1,957 per metric ton, down $16 per metric ton from the previous week, narrowing its premium over Rotterdam's B100 by $17 to $794 per metric ton. Singapore's B30-VLSFO price has dropped by $121 per metric ton to $1,070 per metric ton, while conventional VLSFO prices have fallen by a larger $155 per metric ton.

This has increased Singapore's B30-VLSFO premium over conventional VLSFO from $34 to $223 per metric ton. B100 in Singapore is priced at $1,349 per metric ton, down $185 per metric ton from the previous week. Lower VLSFO prices are likely the reason behind the reduced B100 price in Singapore. Singapore's B100 price peaked at $1,551 per metric ton in mid-October but has since dropped by $202 over four days.

Prima Markets' price assessment for China UCOME cargo, a key feedstock for Singapore's B30-VLSFO blend, has increased by $20 to $1,240 per metric ton. Hong Kong's B30-VLSFO price is $1,026 per metric ton, $156 per metric ton higher than the port's conventional VLSFO price.