The price of B30-VLSFO (POMEME) at the port of Rotterdam fell by $133 last week, reaching $1,197 per ton. This decline occurred while the price of regular VLSFO at this port also dropped by $77, reaching $1,157 per ton. Consequently, the premium of B30-VLSFO over regular VLSFO has decreased by $40 per ton, which is $56 less than last week.
Increase in Raw Material Costs
Despite the price decrease, raw material costs are clearly on the rise. The price of UCOME and POMEME barges in the ARA region has increased by $66, reaching $1,691 and $1,761 per ton, respectively. This price increase indicates pressure on raw material supply costs. Thus, UCOME is trading at a $70 discount compared to POMEME.
Read more: South Bow's $99 Million Profit in the Third Quarter
Impact of Lower Prices on the Market
The decrease in the price of regular VLSFO has likely put pressure on the price of B30-VLSFO. Additionally, the price of B30-LSMGO (POMEME) in Rotterdam has decreased by $70, reaching $1,290 per ton, while the price of regular LSMGO has dropped by $95. This price reduction has also lowered the premium of B30-LSMGO over regular LSMGO to $62 per ton.
Currently, the price of B100 in Rotterdam has reached $1,163 per ton and has remained relatively stable. Dutch suppliers are able to create ZRE-A tickets for selling low-carbon fuels that can be traded with other suppliers. The price of these tickets has decreased from €235 per ton CO2e last week to €215 per ton CO2e this week. These tickets help reduce biodiesel prices in Rotterdam.
In Belgium, where there is no similar mechanism, the price of B100 (UCOME) at the port of Antwerp has reached $1,957 per ton, a decrease of $16, and its premium over Rotterdam B100 has fallen to $794.
In Singapore, the price of B30-VLSFO (UCOME) decreased by $121 last week, reaching $1,070 per ton. Additionally, the price of regular VLSFO at this port has dropped by $155. This price decrease has increased the premium of B30-VLSFO over regular VLSFO to $223 per ton. The price of B100 in Singapore has also reached $1,349 per ton, a decrease of $185.
The price of B100 in Singapore had risen from mid-October to a peak of $1,551 per ton on November 2, before suddenly dropping by $202 within four days. Furthermore, the price of UCOME in China, a key raw material for the B30-VLSFO blend in Singapore, has increased to $1,240 per ton.
The price of B30-VLSFO in Hong Kong has also reached $1,026 per ton, with a premium of $156 over the price of regular VLSFO at this port.
Read more: Minister of Industry Returns the Entire Petrochemical Complex of the Country to Production Cycle · Brent Oil Price Reaches $100 and Market Volatility Continues
