Asia marine biodiesel: B24 prices drop $3.50/t

Market: Biofuels, Oil products
05/11/24

Marine biodiesel prices in Asia fell at the close of trading, although the used cooking oil methyl ester (Ucome) market in China remained firm, with prices assessed higher at $970-990/t on a free-on-board (fob) basis.

B24 Singapore prices were lower despite steady Ice Brent Singapore crude futures at $75.18/bl and a rise in very-low sulphur fuel oil (VLSFO) cargo prices by $6/t to $573.50/t fob.

Enquiries for marine biodiesel were brisker for B24 in Singapore and Port Klang, while there was an indication for B30 at the port of Singapore.

B24 prices in Singapore were assessed in a wider range at $710-725/t on a delivered-on-board (dob) basis, but $3.50/t lower from 4 November. There was an outright indication for B24 at $725/t dob, while other indications on a delivered premium basis were cited around $130-140/t range or $703.50-713.50/t dob.

Singapore B30 was also indicated at $823.5/t dob. In Port Klang, Malaysia, a Ucome-based B24 deal was concluded for 1,000t at about $762/t dob for 20 November.

Prices in Guangzhou were assessed at $750-765/t dob, with the Singapore-Guangzhou spread standing at $40/t.

The east-west arbitrage value stood at $95/t, with Singapore's B24 prices continuing to fetch a hefty discount versus Ucome-based B30 prices at $812.5/t dob basis in the Amsterdam-Rotterdam-Antwerp (ARA) region in overnight trading.

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