Marine biodiesel demand slips in Rotterdam 2Q sales

Market: Biofuels, Natural gas, Oil products
30/07/24

Sales of fossil bunker fuels and marine biodiesel blends at the port of Rotterdam inched higher in the second quarter of the year, but were below levels of a year earlier, according to official port data.

Marine biodiesel blend sales retracted by about 10.5pc quarter-on-quarter (see table). Market participants pointed to muted spot demand as a consequence of limited regulatory incentives and cheaper marine biodiesel prices east of Suez. The premium held by B30 used cooking oil methyl ester (Ucome) dob ARA to B24 Ucome dob Singapore averaged $93.17/t in the April-June period, compared with $40.98/t in the two months prior to April.

But blend sales were 26.5pc above April-June 2023, with stable voluntary demand from cargo owners seeking scope 3 emissions rights and shipowners conducting trials ahead of the introduction of FuelEU Maritime regulations next year.

High-sulphur fuel oil (HSFO) sales rose slightly on the quarter and fell from the second quarter of last year. Chronic traffic disruption in the Red Sea has continued to redirect vessels on a longer journey around the Cape of Good Hope.

Market participants told Argus this has lent support to HSFO demand in Rotterdam, with the high-sulphur product a lucrative option for scrubber-fitted vessels embarking on the east-west route. Sales of very-low sulphur fuel oil (VLSFO) and ultra-low sulphur fuel oil (ULSFO) rose by 7pc compared with the first three months of the year, but tumbled from the second quarter of 2023. Market participants reported limited VLSFO demand and steady production during the quarter.

Combined sales for marine gasoil (MGO) and marine diesel oil (MDO) fell on the quarter and on the year in April-June with mostly lacklustre demand.

LNG bunker fuel sales continued to rise, further complimented by 2,200m³ of bio-LNG sold, the highest since official records for bio-LNG sales began.

By Hussein Al-Khalisy

Rotterdam bunker sales					t
Fuel	2Q24	1Q24	2Q23	q-o-q%	y-o-y%
VLSFO & ULSFO	917,253	857,579	1,127,145	7	-18.6
HSFO	825,125	818,028	847,189	0.9	-2.6
MGO & MDO	369,267	383,409	404,872	-3.7	-8.8
Biofuel blends	235,043	262,634	185,824	-10.5	26.5
Total	2,346,688	2,321,650	2,565,030	1.1	-8.5
LNG (m³)	148,932	131,960	110,231	12.9	35.1
bio-LNG (m³)	2,200	0	0	-	-
Port of Rotterdam

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