What are the advantages of the Argus B24 price assessments?

B24 dob Guangzhou encompasses volumes sold on a spot basis from bonded tanks at the port of Guangzhou. Because of domestic blending complications, B24 is blended in Hong Kong or Singapore and reimported to Guangzhou for bunkering. 

This assessment allows shipowners and bunker suppliers to monitor marine biodiesel price development in China and to compare it with B24 dob Singapore, B24 dob Algeciras-Gibraltar and B30 dob Amsterdam-Rotterdam-Antwerp (ARA) prices.

Understanding the value of marine biodiesel is critical as the industry weighs up decarbonisation options. Marine biodiesel is seen as a ‘plug-and-play’ solution, providing an immediate carbon reduction while the industry awaits lower or zero-carbon alternatives.

How is the assessment used?

Contracts: Shipping companies can use this price in term contracts, spot purchases and in contract negotiations with bunker suppliers. It can also be used internally by organisations for transfer pricing

Risk management: Companies buying UCOME and VLSFO for blending can use this independent index for mark-to-market valuations 

Optimisation: Refiners, traders and bunker suppliers selling marine biodiesel can identify shortages and oversupply to manage production and maximise profits. Shipowners can use this price to determine the cost benefit of bunkering B24 at Guangzhou compared with Singapore or European ports. It can be used to determine the cost of bunkering marine biodiesel to improve a vessel’s CII score, reduce EU ETS costs or meet FuelEU Maritime requirements.

Analysis: Marine biodiesel prices can be used to monitor the evolving premium to conventional bunkers and as an input for price forecasts, and also be compared with other Argus marine biodiesel prices to determine competitiveness.