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) demonstrated slight irregular changes on June 28:
380 HSFO – USD/MT – 458.83 (+2.40)
VLSFO – USD/MT – 562.55 (+1.19)
MGO – USD/MT – 652.29 (-2.67)
MABUX ARA LNG Bunker Index, available from April 29, 2021 and calculated as the average price of LNG as a marine fuel in the ARA region, slightly decreased on June 29 down to 671.25 USD/MT (-2.255 USD). The LNG Bunker Index exceeds the price of MGO LS at the Port of Rotterdam by $ 82.25 (589 USD/MT as of June 28). The price difference slightly decreased (minus 1,25 USD compared to the previous day). More LNG Bunker Indexes on www.mabux.com.
As of June 28, 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: from minus $ 33 in Fujairah (minus $ 27 the day before (t.d.b.)) and minus $ 33 (minus $ 29 t.d.b) in Houston to minus $ 38 (minus $ 38 t.d.b.) in Rotterdam and minus $ 46 (minus $ 46 t.d.b.) in Singapore. According to DBP Index there were no significant changes registered. The most significant change was registered in Fujairah (+$6).
VLSFO, according to MABUX DBP Index, was also underestimated in all selected ports. The undercharging ranged from minus $ 22 in Houston (versus minus $ 19 t.d.b.) and minus $ 37 (minus $ 35 t.d.b.) in Rotterdam to minus $ 55 (minus $51 t.d.b.) in Fujairah and minus $ 50 (minus $ 48 t.d.b.) in Singapore. The most significant change of underestimation level was registered in Fujairah: increase of $ 4.
On June 28, MABUX DBP Index also registered the underpricing of MGO LS in all selected ports, ranging from minus $ 19 (minus $ 23 t.d.b.) in Houston to minus $ 50 (minus $ 46 t.d.b.) in Rotterdam, minus $59 (minus $57 t.d.b.) in Singapore and minus $ 64 (minus $ 57 t.d.b.) in Fujairah. The most significant change of underestimation level was registered in Fujairah: increase of $ 7.
We expect bunker prices may turn into downward trend today. The price for 380 HSFO may decline by 5-8 USD, for VLSFO – by 7-10 USD. The price for MGO may decrease by 5-8 USD.