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) turned into upward correction on August 10:
380 HSFO – USD/MT – 599.17 (+0.67)
VLSFO – USD/MT – 836.24 (+5.09)
MGO – USD/MT – 1 128.02 (+11.98)
As of August 10, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. MABUX digital bunker price benchmark) did not have any firm dynamics so far: in the HSFO segment, underestimation ratio began to decrease slightly, while overestimation margins in the VLSFO segment rose again. Irregular changes prevailed in the MGO LS segment.
380 HSFO fuel grade, according to MDI, was undervalued on August 10 in three ports out of four selected: Houston remains the only overpriced port: plus $43 versus plus $58 the day before. In other ports, the underprising margins were registered as: Rotterdam – minus $57 (versus minus $63 a day earlier), Singapore – minus $93 (minus $99) and Fujairah – minus $107 (minus $121). Fuel underpricing premium moderately decreased in all selected ports.
In the VLSFO segment, there was no trend change: as per the MDI index, fuel grade remained overvalued on August 10 in all four selected ports: Rotterdam – plus $ 33 (plus $ 30 the day before), Singapore – plus $ 54 (plus $ 43), Fujairah – plus $132 (plus $129) and Houston plus $63 (plus $66). VLSFO overprice premium has started to rise moderately in all ports except Houston.
There were two underpriced ports in the MGO LS segment, Rotterdam and Singapore, on August 10: minus $37 (plus $7 a day earlier) and minus $41 (minus $24), respectively. Meantime, Fujairah and Houston remained overvalued: plus $ 241 (plus $ 299) and plus $ 5 (plus $ 42) conformably. The undervaluation premium widened, while the overvaluation one narrowed. The most significant was the overcharge decline in Fujairah by 58 points.
We expect Global bunker market to continue uptrend on August 11: 380 HSFO – plus 3-8 USD/MT, VLSFO – plus 5-12 USD/MT, MGO LS – plus 0-20 USD/MT.