MABUX: Irregular fluctuations to prevail in Global bunker market on Oct.18
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) reversed back to slight downward trend on Oct.17:
380 HSFO – USD/MT – 491.66 (-8.21)
VLSFO – USD/MT – 794.75 (-15.96)
MGO – USD/MT – 1 211.57 (-6.76)
As of October 17, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) registered minor changes in the HSFO segment, Houston moving into the overcharge zone in the VLSFO segment, and a gradual increase of overprice ratio in the MGO LS segment.
According to MDI, 380 HSFO fuel remained undervalued on October 17 in all four selected ports. Undercharge margins were: Rotterdam – minus $148 (minus $146 the day before), Singapore – minus $184 (minus $187), Fujairah – minus $181 (minus $184) and Houston – minus $87 (minus $95). The MDI had little change in this bunker fuel segment.
In the VLSFO segment, this type of fuel was overpriced on October 17 in three out of ports selected: Houston moved back into the overcharge zone: plus $ 23 versus minus $ 3 a day earlier. In Singapore and Fujairah, the overprice premium was plus $72 (plus $57) and plus $38 (plus $20), respectively. The only underestimated port remained Rotterdam – minus $12 (minus $27). Overcharge margins have risen, while underestimation has declined.
In the MGO LS segment, the MDI index registered an overcharge in Fujairah and Houston by plus $82 (plus $78 the day before) and plus $27 (plus $10), respectively. In Rotterdam and Singapore, this fuel grade was undervalued by minus $46 (minus $66) and minus $75 (minus $80), respectively. Overvaluation premium continued to rise moderately, while undercharge one continued to decrease.
We expect Global bunker indexes to change irregular with no firm trend on Oct.18: 380 HSFO – minus 1-3 USD/MT, VLSFO – minus 1-3 USD/MT, MGO LS – plus 5-20 USD/MT.