MABUX: Firm downward trend continues on Global bunker market on Nov.18

in Daily Bunker Report,International Shipping News 18/11/2021

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued downward trend on Nov.17:

380 HSFO – USD/MT – 501.67 (-0.08)
VLSFO – USD/MT – 638.10 (-1.60)
MGO – USD/MT – 759.82 (-2.11)

As of November 17, 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 was undervalued in three out of four ports selected: Rotterdam – minus $ 28 (minus $ 11 the day before), in Singapore – minus $ 12 (unchanged) and in Houston – minus $ 6 (plus $ 6). In Fujairah, MABUX MBP / DBP Index continues to register overcharge of 380 HSFO fuel grade: plus $ 3 (plus $ 13). In general, the process of 380 HSFO price transition to the underpricing sector continues.

VLSFO, according to the MABUX MBP / DBP Index, was overvalued on November 17 at two of the four ports selected: Singapore – plus $ 23 (plus $ 25 the day before) and Fujairah – plus $ 17 (plus 21). In Rotterdam and Houston, the MABUX MBP / DBP Index recorded an underestimation of fuel grade – minus $ 13 (minus $ 2) and minus $ 6 (minus $ 7), respectively. The most significant change was the rise of underestimation rate at the port of Rotterdam by $ 11.

As for MGO LS, according to the MABUX MBP / DBP Index, this fuel grade was underestimated on November 17 at three out of four ports selected: in Rotterdam – minus $ 45 (minus $ 25 the day before), in Singapore – minus $ 27 (minus $ 13) and in Houston – minus $ 8 (plus $ 12). The only port where the MABUX MBP / DBP Index still registers overcharge is Fujairah – plus $ 15 (plus $ 37).

The price of LNG bunker fuel at the port of Risavika (Finland) jumped on November 17 from 1281.05 USD / MT to 1523.72 USD / MT (plus $ 242.67), while the price of MGO LS was 731 USD / MT. Gas prices in Europe are still volatile and remain at high levels.