Weak demand weighs on Singapore bio-bunker prices

Market: Biofuels, Oil products
28/02/25

Bio-bunker prices at the port of Singapore edged down by 1pc on the month in February on the back of weak demand from shipowners and lower fuel oil values.

The price of B24 — a blend of 24pc used cooking oil methyl ester (Ucome) and 76pc very low-sulphur fuel oil (VLSFO) — averaged $698.7/t on a delivered on board (dob) basis, down by almost $10/t compared with January.

Spot demand in Singapore remained thin throughout February following the lunar new year celebrations, and shipowners continued to mostly purchase through term contracts.

B24 dob Singapore prices averaged $703.8/t in January-February, compared with the 2024 average of $729.5/t.

The slow trading activity in February was coupled with a 3pc month-on-month slump in very low sulphur fuel oil (VLSFO) cargo prices to an average of $549.1/t fob Singapore. The delivered premium for B24 versus VLSFO cargo prices was 5.7pc higher on the month at $149.6/t.

Ucome prices in China bucked the trend, rising by 2.6pc on the month to average $1,084.7/t fob China in February. Ucome prices in China have been rising in recent days and ended the month at about $1,115/t.

Singapore continues to be one of the most competitive ports for shipowners as regional sellers compete to offer bio-bunker prices below other ports, but it lost some ground against ports in China and the EU in February.

B24 VLSFO blend prices in Guangzhou were $149.6/t above Singapore values on average in February, which was 3.6pc lower than the January premium, while ARA premiums over Singapore slipped by 16.7pc on the month to $99/t.

By Mahua Chakravarty

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