MABUX: Downward trend returns back to Global bunker market on Aug.16.
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into slight downward correction on Aug. 15:
380 HSFO – USD/MT – 608.79 (-23.51)
VLSFO – USD/MT – 850.83 (-15.96)
MGO – USD/MT – 1 147.77 (-10.49)
As of August 15, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. MABUX digital bunker price benchmark) showed an increase of underpricing and overpricing ratio in the HSFO segment, a drop in overpricing margins in the VLSFO segment and three ports at once in the undercharge zone in the MGO LS segment.
380 HSFO fuel grade, according to MDI, remained undervalued on August 15 in three ports out of four selected: Houston remained the only port with fuel overcharge: plus $43 versus plus $40 the day before. In other ports, the underestimation premium was: Rotterdam – minus $39 (versus minus $31 a day earlier), Singapore – minus $68 (minus $65) and Fujairah – minus $89 (minus $83). The underestimation ratio as well as the overestimation one turned into growth.
There were no substantial changes registered by MDI in the VLSFO segment: fuel remained overvalued on August 15 in all four selected ports: Rotterdam – plus $ 37 (plus $ 46 a day earlier), Singapore – plus $ 56 (plus $ 71), Fujairah – plus $112 (plus $132) and Houston – plus $31 (plus $36). The VLSFO ‘s overcharge premium declined moderately.
In the MGO LS segment, two ports moved at once into the underestimation zone: Rotterdam – minus $40 (plus $3 the day before) and Houston – minus $32 (plus $25). Another underestimated port was Singapore – minus $84 (minus $38). Fujairah remained the only overvalued port – plus $ 197 (plus $ 242). The most significant change was a 57-point increase in fuel underpricing in Houston.
We expect Global bunker prices to drop on August 16: 380 HSFO – minus 8-16 USD/MT, VLSFO – minus 10-22 USD/MT, MGO LS – minus 10-23 USD/MT.