MABUX: Firm upward evolution to continue in Global bunker market on Aug.29

MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) overturned to slight downward trend Aug. 26:

380 HSFO – USD/MT – 599.83 (-5.13)

VLSFO – USD/MT – 857.57 (-4.39)

MGO – USD/MT – 1 238.95 (0.00)

As of August 26, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) showed the return of the Port of Houston to the overcharge zone in the HSFO segment, a surge of overcharge premium in all selected ports in the VLSFO segment and the transition of three ports into the underprice zone in the MGO LS segment.

380 HSFO fuel grade, as per MDI, remained undervalued on August 26 in three ports out of four selected: Houston overturned to the overcharge zone again: plus $ 13 versus minus $ 6 the day before. In other ports, the underestimation ratio was registered as: Rotterdam – minus $36 (minus $53), Singapore – minus $89 (minus $103) and Fujairah – minus $103 (minus $114). The underestimation premium in all selected ports decreased slightly.

In the VLSFO segment, all four selected ports, according to MDI index, remain in the overprice zone: Rotterdam – plus $ 34 (plus $ 99 a day earlier), Singapore – plus $ 73 (plus $ 38), Fujairah – plus $ 95 (plus $ 74) and Houston – plus $55 (plus $27). The overcharge premium rose sharply with the highest surplus registered at the Port of Rotterdam – 65 points.

In the MGO LS segment, three ports at once: Rotterdam, Singapore and Houston moved into the underprice zone on Aug. 26: minus $25 (plus $33 the day before), minus $57 (plus $4) and minus $7 (plus $34), respectively. Thus, Fujairah remains the only overvalued port – plus $136 (plus $201). The most significant change was a 65-point overcharge decline in Fujairah and a 61-point growth of underprice premium in Singapore.

We expect firm upward trend to prevail in the global bunker market on Aug.29: 380 HSFO – plus 3-8 USD/MT, VLSFO – plus 5-12 USD/MT, MGO LS – plus 10-20 USD/MT.

Source: mabux.com