MABUX: Downward changes may continue on Global bunker market on Jul. 15
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) demonstrated slight downward changes on Jul. 14:
380 HSFO – USD/MT – 635.73 (-6.95)
VLSFO – USD/MT – 977.40 (-1.55)
MGO – USD/MT – 1264.49 (-0.63)
As of Jul.14, a correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (Digital Bunker Prices Benchmark) in four largest global hubs showed that 380 HSFO fuel grade was undervalued in all selected ports: Rotterdam – by minus $101 (minus $93 the day before), in Singapore – by minus $140 ( minus $136 the day before), in Fujairah – by minus $100 (minus $96 the day before), in Houston -by minus $10 (minus $11 the day before). MABUX MBP/DBP Index (MDI) for 380 HSFO fuel declined in most of selected ports. The most significant changes were registered in Rotterdam, where the undercharge level increased by 8 points on Jul.14.
VLSFO, according to the MABUX MBP /DBP Index, remained overcharged on Jul.14 in all selected ports. The overcharge ratio was registered in Rotterdam – plus $79 (plus $93 the day before), in Singapore by plus $279 (plus $296 the day before), in Fujairah – by plus $302 (plus $294 the day before), in Houston – plus $84 (plus $101 the day before). MDI for VLSFO declined for most of selected ports. The most significant changes were registered in Singapore and Houston where the overcharge level decreased by 17 points on Jul.14.
MGO LS, according to the MABUX MBP /DBP Index, was undervalued in two out of four selected ports on Jul.14: in Rotterdam – by minus $8 (plus $9 the day before), in Singapore – by minus $16 (plus $21 the day before). This fuel grade remained overvalued in Fujairah – by plus $220 (plus $231 the day before) and in Houston – by plus $73 (plus $58 the day before). MDI index for MGO decreased in most of selected ports. The most significant changes were registered in Singapore, where the overcharge level decreased by 37 points and this fuel grade became undercharged.
We expect global bunker prices may continue to decline. The price for 380 HSFO may decrease by 2-4 USD/MT, VLSFO – by 2-5 USD/MT, MGO – by 5-15 USD/MT.