Marine biofuel premiums soften at prime bunker hub Singapore -sources.
Spot premiums of marine biofuel fell at world’s largest bunker hub Singapore in early 2024, a number of market sources mentioned, weighed by lukewarm demand, decrease biofuel feedstock prices and a stronger underlying benchmark for residual gasoline oil.
The marine biofuel market has seen progress over the past two years as shippers discover lower-carbon options for soiled gasoline oil, however broader demand stays gradual as shippers have a tendency to purchase for sporadic trials and time period contracts.
The B24 mix, the present benchmark grade for marine biofuel, combines 24% used cooking oil methyl ester (UCOME) with 76% very low sulphur gasoline oil (VLSFO). The cargoes sometimes commerce at a premium to Singapore VLSFO quotes.
🔥 What about we co-host a webinar? Let’s educate, captivate, and convert the biofuels economic system!
Biofuels Central is the worldwide go-to on-line journal for the biofuel market, we may also help you host impactful webinars that develop into a worldwide reference in your matter and are an evergreen supply of leads. Click on right here to request extra particulars
Spot delivered premiums of B24 traded to as little as round $140 a metric ton over Singapore VLSFO quotes in January, bunker market sources mentioned, down from between $145 and $170 a ton in direction of end-2023 and above $200 a ton in Q3 2023.
The value unfold has narrowed this yr after typical VLSFO bunker costs strengthened, as transport disruptions within the Crimson Sea led to firmer demand for VLSFO marine gasoline.
In the meantime, Asia UCOME costs have been capped since This autumn 2023 as a result of gradual demand and ample provides, on prime of a delicate European market, biofuel merchants mentioned.
Singapore marine biofuel gross sales breached 520,000 tons in 2023, greater than tripling from 2022 however making up just one% of complete bunker volumes, port authority information confirmed.
Bio-blended volumes hit a recent month-to-month file excessive final October earlier than easing in November and December.
Sellers are banking on the European Union’s emissions buying and selling system for the transport trade to raise world demand for lower-carbon marine fuels from this yr.
The Worldwide Maritime Organisation additionally accepted interim pointers final yr that helped make clear how licensed sustainable biofuels can be utilized to enhance a ship’s carbon depth indicator score.
READ the most recent information shaping the biofuels market at Biofuels Central
Marine biofuel premiums soften at prime bunker hub Singapore -sources, SINGAPORE, February 7 2024
