European marine biodiesel: Prices mostly ease

Market: Biofuels, Oil products
04/11/24

European marine biodiesel prices mostly eased under pressure from muted demand in ARA.

In the ARA trading and refining hub, market participants pointed to lacklustre spot marine biodiesel demand. Values for Advanced Fame 0 blends in ARA — which include a deduction of the value of Dutch HBE-G renewable fuel tickets — were also dampened by firmer HBE-G prices in recent sessions. Higher hydrotreated vegetable oil (HVO) prices combined with tightening supply due to less HBE-Gs issued from shipping have lent support to the ticket prices. Shipowners looking to bunker marine biodiesel to deliver proof of sustainability (PoS) documentation to their customers, to offset the latter's scope 3 emissions, shifted their marine biodiesel demand to Singapore in recent months due to more competitive prices east of Suez.

In the west Mediterranean, market participants pointed to an uptick in small-volume tenders for HVO delivery by truck at Spanish ports. Participants added that this demand was mainly attributed to smaller-sized vessels conducting trials ahead of the introduction of FuelEU Maritime regulations at the turn of next year.

EU emissions trading system (ETS) prices increased to $70.65/t from $69/t. As a result, ETS-inclusive premiums held by marine biodiesel blends against their fossil counterparts mostly narrowed.

B30 Ucome dob ARA values eased by $7.50/t to $812.50/t, and the blend's ETS-inclusive premium against VLSFO dob ARA slipped by $9.63/t to $272.79/t.

Calculated B30 Advanced Fame 0 dob ARA prices edged lower by $1.59/t to $710.01/t, and the blend's ETS-incorporated premium against VLSFO lost $3.72/t to $170.30/t. Calculated B100 Advanced Fame 0 dob ARA values shed $8.80/t to $1,078.86/t and its premium against MGO lost $40.17/t to $317.51/t when ETS costs were accounted for.

B24 dob Algeciras-Gibraltar prices edged up by $1.50/t to $781.50/t, and its premium against VLSFO with the inclusion of ETS costs widened by $19.50/t to $227.13/t.

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