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) after three days of moderate decline last week, showed again a significant rise on March 18:

380 HSFO – USD/MT – 709.93 (+27.54)

VLSFO – USD/MT – 921.69 (+39.90)

MGO – USD/MT – 1 161.23 (+54.85)

The correlation of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker price benchmark) on March 18 showed that 380 HSFO fuel grade remained overpriced in all selected ports: Rotterdam – plus $45 (plus $81 a day earlier), Singapore – plus $5 (plus 42), Fujairah plus $25 (plus $47) and Houston plus $103 (plus $129). The overprice margins for all ports has decreased significantly. The maximum decline was shown by Rotterdam and Singapore: by minus 36 and 37 points, respectively.

In the VLSFO segment, the MABUX MBP/DBP Index on March 18 also registered a sharp decrease of overcharge ratio at all ports: Rotterdam – plus $ 102 (versus plus $ 141 the day before), Singapore – plus $ 35 (plus $ 68), Fujairah – plus $ 89 (plus $153) and Houston plus $87 (plus $134). The most significant declines were Fujairah – 64 points, and Houston – 47 points. A significant discrepancy between the market and digital indices indicates high volatility in the VLSFO segment.

MGO LS, according to the MABUX MBP/DBP Index, was significantly overvalued in two out of four ports selected: Fujairah – plus $69 (plus $176 a day earlier) and Houston – plus $91 (plus $140). Rotterdam and Singapore were in underprice zone: minus $41 (minus $3) and minus $49 (100-percent correlation the day before), respectively. At the moment, there is a trend towards underestimation of this type of fuel. The most significant change of the Index was registered in Fujairah – minus 107 points.

We expect the instability to continue in global bunker market while the uptrend may prevail today: 380 HSFO – plus 6–11 USD/MT, VLSFO – plus 8-14 USD/MT, MGO LS – plus 5-35 USD/MT.

mabux.com