MABUX: Sharp irregular changes to prevail in Global bunker market on Jul.25
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued firm downward trend on July 22:
380 HSFO – USD/MT – 626.71 (-5.65)
VLSFO – USD/MT – 926.37 (-20.69)
MGO – USD/MT – 1 209.93 (-11.92)
As of July 22, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. MABUX digital bunker price benchmark) showed a gradual trend towards reducing of underestimation and an increase of overestimation premium. Fuel 380 HSFO, according to MDI, was undervalued in three out of four ports selected: Houston moved back into the overcharge zone: plus $ 8 versus minus $ 7 a day earlier. In other ports, the underprice margins were: Rotterdam – minus $107 (vs. minus $121 a day earlier), Singapore – minus $148 (minus $152) and Fujairah – minus $119 (minus $135). In the HSFO segment, a slight narrowing of fuel underpricing premium continues.
VLSFO fuel grade, according to the MDI index, remained overvalued on July 22 in all four selected ports: Rotterdam – plus $ 33 (plus $ 20 the day before), Singapore – plus $ 175 (plus $ 173), Fujairah – plus $ 198 (plus $ 209) and Houston – plus $88 (plus $60). Thus, in the VLSFO segment, there was no single dynamics of the MDI index: the overcharge increased in Rotterdam, Singapore and Houston, but decreased in Fujairah.
In the MGO LS segment, the port of Rotterdam moved into the fuel overcharge zone again on July 22: plus $25 versus minus $10 a day earlier. Singapore remained the only port staying in the underestimation zone: minus $21 (minus $71). In Fujairah and Houston, the MDI registered fuel overpricing by plus $264 (plus $233) and plus $61 (plus $165), respectively. Overcharge premium increased in Rotterdam and Fujairah but decreased in Houston. In Singapore, the underprice ratio also decreased.
We expect global bunker indices to change irregular with no firm trend today: 380 HSFO – minus 2-9 USD / MT, VLSFO – minus 4-13 USD / MT, MGO LS – plus-minus 5-35 USD/MT.