MABUX: Firm downtrend to continue in Global bunker market on Oct.13.
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) continued slight downward move on Oct.12:
380 HSFO – USD/MT – 516.86 (-6.39)
VLSFO – USD/MT – 819.24 (+0.01)
MGO – USD/MT – 1 223.64 (-5.09)
As of October 12, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices
and the MABUX digital bunker price benchmark) registered fuel’s underestimation in the
HSFO segment in all selected ports, no firm trend in the VLSFO segment, and a sharp decline
of MGO LS undercharge margins in Rotterdam and Singapore.
According to the MDI, 380 HSFO fuel grade was underpriced on October 12 in all four
selected ports. The undervaluation ratio was: Rotterdam – minus $139 (minus $132 the day
before), Singapore – minus $167 (minus $160), Fujairah – minus $180 (minus $186), Houston
– minus $92 (minus $96). The MDI index still had no firm dynamics here: up in Fujairah and
Houston, but down in Rotterdam and Singapore.
In the VLSFO segment, this type of fuel was overpriced in three out of four ports selected:
Singapore – plus $ 66 (plus $ 69 the day before), Fujairah – plus $52 (plus $47) and Houston
plus $4 (plus $3). The only underestimated port was Rotterdam – minus $21 (minus $32). The
MDI index did not have any firm trend in this fuel segment.
In the MGO LS segment, the MDI index registered the transition of Fujairah to the overprice
zone: plus $ 2 versus minus $ 75 a day earlier, where it joined Houston – plus $21 (plus $31).
In Rotterdam and Singapore, this fuel grade was undervalued by minus $159 (minus $268)
and minus $181 (minus $285), respectively. Both ports recorded a sharp decline of
undervaluation margins: $109 in Rotterdam and $104 in Singapore.
We expect firm downtrend to continue in Global bunker market on Oct.13: 380 HSFO –
minus 5-9 USD/MT, VLSFO – minus 8-15 USD/MT, MGO LS – minus 5-45 USD/MT.