MABUX: Firm downward trend in Global bunker market the third day in a row
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued firm downward movement on July 21:
380 HSFO - USD/MT – 632.36 (-6.52)
VLSFO - USD/MT – 947.06 (-13.33)
MGO - USD/MT – 1 221.85 (-23.17)
As of results of July 21, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices and the MABUX digital bunker price benchmark) showed slight multidirectional changes with no firm dynamics. Fuel 380 HSFO, according to MDI, was still underestimated in all four selected ports: Rotterdam - minus $ 121 (versus minus $ 120 the day before), Singapore - minus $ 152 (minus $ 149), in Fujairah - minus $ 135 (minus $137) and Houston - minus $7 (minus $33). The MDI index did not have a firm trend in the HSFO segment: underpricing premium increased slightly in Rotterdam and Singapore but decreased in Fujairah and Houston.
VLSFO fuel grade, according to the MDI index, remained overvalued on July 21 in all four selected ports: Rotterdam - plus $20 (plus $19 the day before), Singapore - plus $173 (plus $198), Fujairah - plus $209 (plus $220) and Houston – plus $60 (plus $53). There was also no single trend of the MDI index in the VLSFO segment: the overcharge widened in Rotterdam and Houston but narrowed in Singapore and Fujairah.
In the MGO LS segment, the port of Rotterdam moved again back to the fuel underpricing zone on Jul 21: minus $10 versus plus $22 a day earlier. Another underestimated port was Singapore: minus $71 (minus $56). In Fujairah and Houston, the MDI index registered fuel overpricing by plus $233 (plus $267) and plus $165 (plus $80), respectively. Moreover, both the underestimation and overestimation margins increased.
We expect global bunker to trend lower today: 380 HSFO – minus 10-20 USD / MT, VLSFO – minus 15-25 USD / MT, MGO LS – minus 3-35 USD/MT.
Source: www.mabux.com
