MABUX: Global bunker indices to trend higher on Oct.27
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) bounced back on Oct.26:
380 HSFO – USD/MT – 488.25 (-2.12)
VLSFO – USD/MT – 786.36 (-1.56)
MGO – USD/MT – 1 169.57 (-4.62)
As of October 26, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) recorded continued moderate rise of undercharge volumes in the HSFO segment, a decrease of undervaluation as well as overvaluation margins in the VLSFO segment, and no sustainable trend in the MGO LS segment.
According to MDI, 380 HSFO fuel grade remained undervalued on October 26 in all four selected ports. The underprice ratio was: Rotterdam – minus $167 (minus $158 the day before), Singapore – minus $192 (minus $189), Fujairah – minus $210 (minus $200), Houston – minus $80 (minus $65). In all ports, the MDI index registered continued moderate growth.
In the VLSFO segment, this type fuel was overpriced on October 26 in three ports out of four selected. The only underestimated port is still Rotterdam – minus $32 (vs. minus $36 the day before). In other ports, MDI recorded the following overprice levels: Singapore – plus $33 (plus $38), Fujairah – plus $18 (plus $26) and Houston – plus $14 (plus $24). Overestimation as well as underestimation slightly decreased.
In the MGO LS segment, the MDI registered an undercharge on October 26 in three out of four ports selected: Rotterdam – minus $ 71 (minus $ 85 a day earlier), Singapore – minus $ 73 (minus $ 92) and Houston – minus $ 78 (minus 64). Fujairah remains the only overvalued port in this bunker fuel segment: up $91 versus plus $84 a day earlier. The MDI index did not have a sustainable trend in this bunker fuel segment.
We expect global bunker indices to trend higher on Oct.27: 380 HSFO – plus 5-11 USD/MT, VLSFO – plus 10-16 USD/MT, MGO LS – plus 15-30 USD/MT.