MABUX: Bunker index may turn into downward changes on Sep. 30

MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued to increase on Sep. 29:

380 HSFO – USD/MT – 506.75 (+11.34)
VLSFO – USD/MT – 761.02 (+13.10)
MGO – USD/MT – 1 098.29 (+23.40)

380 HSFO fuel grade, according to MDI (comparison MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark), were undervalued on Sep. 29 in all selected ports. The underestimation premium was registered as: Rotterdam – minus $76 (minus $93 the day before), Singapore – minus $148 (minus $142 the day before), Fujairah – minus $136 (minus $141), in Houston – by minus $72 (minus $65 the day before). The underestimation level decreased in half of selected ports. The most significant changes were registered in Rotterdam, where the undercharge level decreased by 17.

In the VLSFO fuel grade segment, three out of four selected ports, according to the MDI index, were in the overcharge zone: Singapore – plus $55 (plus $46 the day before), Fujairah – plus $58 (no changes) and Houston plus $29 (plus $62 the day before). In Rotterdam this fuel grade became undercharged by minus $6 (plus $1 the day before). As per MDI – downward trend prevails in the VLSFO segment: the overcharge premium declined in half of selected ports. The most significant changes were registered in Houston, where overcharge level declined by 33 points.

MGO LS was undercharged in three out of four selected ports: in Rotterdam – by minus $52 (minus $40 the day before), in Singapore – by minus $119 (minus $114 the day before), in Houston – by minus $56 (plus $12 the day before). This fuel grade remained overcharged in Fujairah – by plus $172 (plus $193 the day before). MDI index in MGO LS segment decreased in all selected ports. The most significant changes were registered in Houston, where the overcharge level declined by 68 points and, as a result, this fuel grade became undercharged.

We expect Global bunker prices may decline on Sep.30: the price for 380 HSFO may decrease by 1-4 USD/MT, VLSFO – by 3-6 USD/MT, MGO LS – may change by plus/minus by 2-4 USD/MT.

Source: Mabux.com