MABUX: World bunker indices are at a stage of sharp decline for the second day in a row
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) turned into the phase of downtrend on Oct.11:
380 HSFO – USD/MT – 523.25 (-8.14)
VLSFO – USD/MT – 819.23 (-7.09)
MGO – USD/MT – 1 228.73 (-6.81)
As of October 11, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) registered no firm trend in the HSFO segment, the return of Houston to the overprice zone in the VLSFO segment, and a sharp increase in MGO LS undercharge margins in Rotterdam and Singapore.
According to MDI, 380 HSFO fuel grade remained undervalued on October 11 in all four selected ports. The undercharge premium was registered as: Rotterdam – minus $132 (minus $116 the day before), Singapore – minus $160 (minus $162), Fujairah – minus $186 (minus $172), Houston – minus $96 (minus $89). Here, the MDI index did not have any firm trend: the undercharge decreased in Singapore but rose in other ports.
In the VLSFO segment, Houston returned again to the overprice zone on October 11: plus $ 3 versus minus $ 15 a day earlier. In Singapore and Fujairah, this type of fuel was also overpriced by plus $69 (plus $67) and plus $47 (plus $44), respectively. Rotterdam remains the only undervalued port in the VLSFO segment: minus $32 (minus $31).
There were also changes in the MGO LS segment: the MDI index showed an overprice at the port of Houston by plus $ 31 (vs. minus $ 1 the day before). Thus, three ports remained in the underestimation zone: Rotterdam – minus $268 versus minus $189 a day earlier, Singapore – minus $285 (minus $189) and Fujairah – minus $75 (minus $32). Except for Houston, all other ports show a sharp increase of underestimation premium. The most significant changes were Rotterdam, up $79, and Singapore, up $96.
We expect the global bunker indices to continue firm downtrend today: 380 HSFO – minus 4-8 USD/MT, VLSFO – minus 5-13 USD/MT, MGO LS – minus 5-45 USD/MT.