MABUX: Firm downward trend on global bunker market continues on Aug.20

MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into firm downward trend on Aug.19:

380 HSFO – USD/MT – 433.27 (-7.09)
VLSFO – USD/MT – 525.89 (-8.25)
MGO – USD/MT – 623.04 (-10.50)

The MABUX ARA LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, continued its moderate decline on August 20: 976.38 USD/MT (minus 2.26 USD). The LNG Bunker Index exceeds the cost of MGO LS in the port of Rotterdam by 448.38 USD (MGO LS was 528 USD/MT as of August 19), the difference in price compared to the day before increased by 22.74 USD. LNG bunker indices are available at www.mabux.com.

As of August 19, 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 remained undervalued in all selected ports, apart from Fujairah, where this type of fuel was still overvalued (plus $ 6 compared to plus $ 11 the day before). The underpricing margins for the rest of the ports were minus $ 11 in Houston (minus $ 15), minus $ 41 (minus $ 29) in Rotterdam and minus $ 39 (minus $ 36) in Singapore. The most significant change of the MABUX MBP/DBP Index was registered again in Rotterdam: $ 12 up.

VLSFO, according to the MABUX MBP / DBP Index, was underestimated on all selected ports on August 19. The VLSFO underpricing was: minus $ 5 in Houston (unchanged), minus $ 36 (minus $ 32 vs. the day before) in Fujairah, minus $ 39 (minus $ 33) in Singapore and minus $ 44 (minus $ 30) in Rotterdam. As per the MABUX MBP/DBP Index, VLSFO’s underestimation rate rose sharply in Rotterdam – plus $ 14.

MABUX MBP/DBP Index also registered the underpricing of MGO LS in all selected ports on August 19: in Houston – minus $ 13 (minus $ 15 the day before), in Rotterdam – minus $ 84 (minus $ 62), minus $ 98 (minus $ 79) in Singapore and minus $ 65 (minus $ 52) in Fujairah. In Rotterdam, the underestimation margin rose by $ 22, and in Singapore – approached the record level of $ 100 – $ 98.

We expect global bunker prices continue firm downward trend today: 380 HSFO – minus 5-10 USD/MT, VLSFO – minus 6-12 USD/MT, MGO LS – minus 15-25 USD/MT.
Source: www.mabux.com