Indications for VLSFO with a bio-mix of a maximum of 30% in Rotterdam were at $730.00-733.00/mt and a bio-mix of maximum of 24% in Singapore were at $733.00-$736.00/mt, both rising from the previous week. Deals were reportedly done at a premium of $190-193/mt to FOB Rotterdam Barges 0.5％S fuel oil paper swap values and at a premium of $127-130/mt to Singapore 0.5%S fuel oil paper swap values. In the EU Emissions Trading System (EUA), CO2 futures prices were hovering in the high-Euro 70's/mt as of Aug 27.

Considering the current tightness in VLSFO supply, B24-VLSFO in Singapore was initially aiming to make a deal at a premium $155/mt to the quotations. However, the supply of VLSFO with quality guaranteed had significantly declined, and bio-bunker suppliers also reduced their supply volumes. Nevertheless, the trading level remained at a premium $127-130/mt to the quotations along with a growing sense of ampleness due to sluggish demand for feedstocks of biofuels.

Based on statistics from the Maritime and Port Authority of Singapore (MPA), bio-bunker sales in 2024 peaked at 66,000 mt in March and have since averaged in the low-50,000's mt per month, below market expectations of 70,000 mt per month. On the other hand, demand for biofuels remained weak, and inventories of UCO and UCOME, imported from countries such as China, were rising. This led to a strengthening sense of supply surplus in the biofuel market.

Amid high prices of UCO/UCOME from China, profits were not being passed on to final products like bio-bunkers. When anti-dumping investigations against Chinese biofuels were carried out in Europe, the largest consumer, exports to Europe decreased. As a result, China's export volume was almost halved from the previous year. In China, only 30% of UCO collection and UCOME production companies had been operating, causing a supply disruption. UCOME prices for September delivery to Singapore were expected to be trading at $1,045-1,105/mt.

In the US, the Environmental Protection Agency (EPA) had launched an investigation into the sourcing and supply chains of at least two companies producing renewable energy. Those companies might have obtained government subsidies and used illegal feedstocks to produce UCO. The investigation would try to determine if feedstocks meet government standards. The agency mentioned that vegetable oils like palm oil have been mixed into UCO imported from Asia, raising concerns about improper pricing. Similar measures are being taken in Europe, where anti-dumping duties were imposed on Chinese UCO/UCOME/HVO in July, and additional tariffs were applied to some companies starting in August. Biofuel traders were concerned that Chinese UCO/UCOME exports will decline further, leading to sustained high prices.