MABUX: Irregular fluctuations continue to prevail in Global bunker market on Oct.26
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) did not have any firm trend on Oct.25:
380 HSFO – USD/MT – 490.37 (-2.82)
VLSFO – USD/MT – 787.92 (+2.84)
MGO – USD/MT – 1 174.19 (+5.99)
As of October 25, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) registered a moderate growth of underpricing in the HSFO segment, no firm overcharge trend in the VLSFO segment, and underestimation down and overestimation up in the MGO LS segment.
According to MDI, 380 HSFO fuel remained undervalued on October 25 in all four selected ports. Underprice premium was registered as: Rotterdam – minus $158 (minus $156 the day before), Singapore – minus $189 (minus $182), Fujairah – minus $200 (no change), Houston – minus $65 (minus $55). In all ports except Fujairah, the MDI rose moderately.
In the VLSFO segment, this fuel grade was overvalued on October 25 in three ports out of four selected. The only underestimated port remained Rotterdam – minus $36 (vs. minus $38 a day earlier). In other ports, MDI registered the following overcharge margins: Singapore plus $38 (plus $41), Fujairah plus $26 (plus $27) and Houston plus $24 (plus $22). The overcharge dynamics did not have a firm trend, while the undervaluation slightly decreased.
In the MGO LS segment, the MDI index registered an undercharge in three out of four ports selected: Rotterdam – minus $ 85 (minus $ 52 the day before), Singapore – minus $ 92 (minus $ 74) and Houston – minus $ 64 (minus 45). Fujairah remains the only overvalued port in this bunker fuel segment: up $84 versus plus $109 a day earlier. The overcharge slightly decreased, while the underpricing was up by $18-33.
We expect irregular fluctuations to prevail in Global bunker market on Oct.26: 380 HSFO – plus 1-3 USD/MT, VLSFO – plus 2-5 USD/MT, MGO LS – plus-minus 8-14 USD/MT.