MABUX: Slight downtrend to prevail in Global bunker market on Oct.19
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) turned into slight upward correction on Oct.18:
380 HSFO – USD/MT – 493.12 (+1.46)
VLSFO – USD/MT – 797.88 (+3.13)
MGO – USD/MT – 1 222.02 (+10.45)
As of October 18, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices and the MABUX digital bunker price benchmark) recorded minor changes in the HSFO segment, an undervaluation’s decline in the VLSFO segment, and no firm trend in the MGO LS segment.
According to MDI, 380 HSFO fuel remained undervalued on October 18 in all four selected ports. Underprice ratio was: Rotterdam – minus $142 (minus $148 the day before), Singapore – minus $180 (minus $184), Fujairah – minus $186 (minus $181), Houston – minus $82 (minus $97). The MDI remained marginal in this bunker fuel segment.
In the VLSFO segment, this fuel grade was overcharged on October 18 in three ports out of four selected. The only underestimated port was Rotterdam – minus $7 (minus $12 a day earlier). In other ports, MDI registered the following overprice premium: Singapore plus $70 (plus $72), Fujairah plus $39 (plus $38) and Houston plus $24 (plus $23). Overcharge margins changed slightly, while underpricing continued to decline.
In the MGO LS segment, the MDI index registered an overcharge in Fujairah and Houston by plus $65 (plus $82 the day before) and plus $8 (plus $27), respectively. In Rotterdam and Singapore, this type of fuel was undervalued by minus $53 (minus $46) and minus $88 (minus $75), respectively. Overprice premium has declined, while undervaluation has widened.
We expect slight downtrend to prevail in Global bunker market on Oct.19: 380 HSFO – minus 5-10 USD/MT, VLSFO – minus 8-15 USD/MT, MGO LS – minus 5-20 USD/MT.