MABUX: Downward trend prevails on global bunker market on Aug 23
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued firm downward trend on Aug 20:
380 HSFO - USD/MT – 428.40 (-4.87)
VLSFO - USD/MT – 520.19 (-5.70)
MGO - USD/MT – 615.81 (-7.23)
The MABUX ARA LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, continued its slight decline on August 23: 974.30 USD/MT (minus 2.08 USD). The LNG Bunker Index exceeds the cost of MGO LS in the port of Rotterdam by 449.30 USD (MGO LS price was 525 USD/MT as of August 20), the difference in price compared to the day before increased by 0.92 USD. LNG bunker indices are available at www.mabux.com.
As of August 20, a correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (Digital Bunker Prices Benchmark) in four largest global hubs showed that 380 HSFO fuel remained undervalued in all selected ports, except Fujairah, where the overpricing of this fuel grade rose again to plus $ 15 (plus $ 6 a day earlier). The 380 HSFO’s underestimation in other ports was: minus $ 9 in Houston (minus $ 11), minus $ 36 (minus $ 41) in Rotterdam and minus $ 32 (minus $ 39) in Singapore. In general, the MABUX MBP/ DBP Index for all selected ports has changed insignificantly.
VLSFO, according to the MABUX MBP / DBP Index, was undervalued in all selected ports on August 20, except for Houston, where an overcharge by plus $ 1 (minus $ 5 a day earlier) was recorded for the first time since July 21. The VLSFO’s underestimation for other ports was: minus $ 25 (minus $ 36) in Fujairah, minus $ 34 (minus $ 39) in Singapore and minus $ 32 (minus $ 44) in Rotterdam. The most significant change of the MABUX MBP/DBP Index was registered in Rotterdam ($ 12 down).
MABUX MBP/DBP Index registered the underpricing of MGO LS in all selected ports on August 20: in Houston - minus $ 14 (minus $ 13 the day before), in Rotterdam - minus $ 60 (minus $ 84), minus $ 78 (minus $ 98) in Singapore and minus $ 38 (minus $ 65) in Fujairah. A sharp decrease of overpricing ratio was recorded in almost all selected ports except Houston: Rotterdam - by $ 24, in Singapore - by $ 20, in Fujairah - by $ 27.
We expect global bunker will mostly decline today: 380 HSFO – minus 5-8 USD/MT, VLSFO – minus 6-11 USD/MT, MGO LS – plus-minus 3-55 USD/MT.
Source: www.mabux.com
