MABUX: Sharp decline of price indices is expected in Global Bunker market on Sep. 26
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) increased on Sep. 23:
380 HSFO – USD/MT – 519.58 (+0.18)
VLSFO – USD/MT – 783.55 (+0.99)
MGO – USD/MT – 1 112.83 (+9.09)
380 HSFO fuel grade, according to MDI (comparison MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark), were undervalued on Sep. 23 in all selected ports. The underestimation premium was registered as: Rotterdam – minus $72 (minus $92 the day before), Singapore – minus $149 (minus $147 the day before), Fujairah – minus $134 (minus $141 the day before), in Houston – by minus $59 (minus $64 the day before). The underestimation level declined in most of selected ports. The most significant changes were registered in Rotterdam, where the undercharge level decreased by 20 points.
In the VLSFO fuel grade segment, all four selected ports, according to the MDI index, were in the overcharge zone: Rotterdam – plus $21 (plus $11 the day before), Singapore – plus $59 (plus $56 the day before), Fujairah – plus $61 (plus $59 the day before) and Houston plus $39 (no changes). As per MDI – upward trend prevails in the VLSFO segment: the overcharge premium increased in all selected ports except of Houston. The most significant changes were registered in Rotterdam, where the overcharge level increased by 10 points.
MGO LS was undercharged in three out of four selected ports: in Rotterdam – by minus $30 (minus $26 the day before), in Singapore – by minus $99 (minus $64 the day before), in Houston – by minus $16 (minus $12 the day before). This fuel grade remained overcharged in Fujairah – by plus $163 (plus $203 the day before). MDI index in MGO LS segment declined in all selected ports. The most significant changes were registered in Singapore (undercharge level increased by 35 points) and Fujairah (overcharge level decreased by 40).
We expect Global bunker prices may decline sharply on Sep.26: the price for 380 HSFO may decrease by 18-25 USD/MT, VLSFO – by 20-30 USD/MT, MGO LS – may fall by 25-35 USD/MT.