The price of B30-VLSFO biodiesel (POMEME) at the Port of Rotterdam increased by $11 per ton last week, reaching $1,162 per ton. Meanwhile, the price of regular VLSFO at this port rose by $30 to $1,007 per ton. These changes have reduced the price margin of B30-VLSFO compared to regular VLSFO to $155 per ton.
Decrease in Feedstock Prices and Its Impacts
Dutch suppliers can create ZRE A tickets for the sale of low-carbon fuels, which can be traded with other suppliers. The price of these tickets remained stable at €240 per ton CO2e (equivalent to $269 per ton CO2e) on Thursday of this week. The existence of these tickets has contributed to the decrease in biodiesel prices in Rotterdam compared to other ports, while Belgium does not have such a system.
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The prices of UCOME and POMEME barges in the Prima Markets, both reflecting feedstock supply costs, decreased by $73 per ton last week, reaching $1,682 and $1,752 per ton, respectively. This means that UCOME has a discount of $70 per ton compared to POMEME. The decrease in feedstock costs has likely contributed to the tightening price margin of B30-VLSFO compared to regular VLSFO.
Analysis of Demand and Biodiesel Sales
Demand for bio-bunker fuel in Rotterdam has also decreased. Suppliers at this port sold 154,000 tons of bio-bunker fuel in the third quarter of this year, a 38 percent decrease compared to the second quarter. Sales of B30-VLSFO have dropped to less than half of 63,000 tons, while sales of bio-MGO have decreased by 4 percent to 41,000 tons.
The Port Authority of Rotterdam does not separately report B100 statistics, stating that it is likely included in bio-MGO. B100 samples registered in Rotterdam by ENGINE have more than doubled in the first eight months of the year, and this increasing demand may explain why bio-MGO sales have remained stable.
In the neighboring Belgian port of Antwerp, the price of B100 (UCOME) has reached $1,974 per ton today, a decrease of $10 compared to last week. Biodiesel sales in Antwerp-Bergen also dropped to 13,000 tons in the third quarter, the lowest volume of biodiesel in a season since the fourth quarter of last year. Biodiesels accounted for less than 1 percent of the total biodiesel sales of this port, which amounted to 2.16 million tons in the third quarter.
Finally, the price of B30-VLSFO (UCOME) in Gibraltar has reached $1,050 per ton, with a price margin of $252 per ton compared to regular VLSFO at this port. In Singapore, the price of B30-VLSFO (UCOME) decreased to $1,128 per ton last week, with a price margin of $184 per ton.
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