Indications for VLSFO with a bio-mix of a maximum of 30% in Rotterdam were at $826.00-846.00/mt and a bio-mix of maximum of 24% in Singapore were at $775.00-795.00/mt, edging up from the previous week. Deals were reportedly done at a premium of $218-228/mt to FOB Rotterdam Barges 0.5％S fuel oil and at a premium of $137-147/mt to Singapore 0.5%S fuel oil. The European Union Allowance (EUA) futures price of carbon dioxide (CO2) was currently in the low Euro 71's/mt.

The supply and onshore storage of Used Cooking Oil Methyl Ester (UCOME), which ensured a certain level of quality, had recently declined, leading to a significant price increase. UCOME is used as feedstocks for bio-fuels. Market players mentioned that Used Cooking Oil (UCO) with free fatty acid (FFA) content of 10-15% was being supplied within China. This was attributed to a sharp drop in UCOME production in the country. It was said that UCO with a maximum of 5% of FFA would be suitable for UCOME production.

Some dealers were reportedly collecting low-quality UCO temporarily, but with these dealers withdrawing from the business, the overall collection volume of UCO had dropped. Furthermore, some bio-diesel production companies in Europe were hesitant about the export of UCOME from China with unspecified raw-materials, and continued to restrict imports of UCOME from China.

On the other hand, demand for bio-bunkers had been gradually increasing. Demand from container vessels and car carriers remains firm, and premiums to the quotations slightly expanded at the major supply ports in Rotterdam and Singapore. Particularly in Singapore, inquiries from shipping companies in Taiwan and South Korea had been increasing since the end of March. Moreover, bio-bunkers suppliers in China are gradually increasing the supply from 2024 onwards, with the nation's shipping companies also expected to increase procurement. Prices were underpinned by growing views of demand expansion.

There were heightening concerns about competition for feedstock among bio-bunkers, sustainable aviation fuel (SAF), and biodiesel. However, such a situation had yet to emerge and prices of SAF and bio-bunkers had not surged. The next milestone for GHG reduction targets for all these fuels was in 2030. Thus, market players in the aviation and shipping industries foresaw that the use of such fuels would begin in earnest globally in two to three years.