MABUX: Irregular changes with no firm trend in Global bunker market on Oct 11
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) demonstrated firm uptrend on Oct.10:
380 HSFO – USD/MT – 531.54 (+9.52)
VLSFO – USD/MT – 826.51 (+11.63)
MGO – USD/MT – 1 232.46 (+34.98)
As of October 10, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices and the MABUX digital bunker price benchmark) registered a slight growth of undercharge margins in the HSFO segment, an increase of underpricing and decline of overpricing in the VLSFO segment, and no single underprice trend in the MGO LS segment.
According to MDI, 380 HSFO fuel was significantly underpriced on October 10 in all four selected ports. The undercharge premium was registered as: Rotterdam – minus $116 (minus $113 the day before), Singapore – minus $162 (minus $154), Fujairah – minus $172 (minus $158), Houston – minus $89 (minus $85). The MDI index recorded a slight increase of the underestimation ratio of this type of fuel at all selected ports.
In the VLSFO segment, the MDI index registered on October 10 an underpricing in Rotterdam – minus $ 31 (minus $ 17 a day earlier) and in Houston – minus $ 15 (minus $ 5). In Singapore and Fujairah, VLSFO remained overpriced by plus $67 (plus $77) and plus $44 (plus $59), respectively. The underprice margins grew, while the overvaluation decreased.
In the MGO LS segment, all four selected ports were undervalued, with Fujairah eventually moving into the undervalued zone with minus $32 (plus $33 the day before). In other ports, the underestimation of fuel was: Rotterdam – minus $ 189 versus minus $ 140 a day earlier, Singapore – minus $ 189 (minus $ 131) and Houston – minus $ 1 (minus $ 42). There was no single trend in the undervaluation’s dynamics: an increase of underprice values in Rotterdam, Singapore and Fujairah, and drop in Houston.
We expect the global bunker indices do not have a firm trend today and will change irregular: 380 HSFO – minus 3-8 USD/MT, VLSFO – minus 7-12 USD/MT, MGO LS – plus-minus 15-25 USD/MT.