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) continued slight downward move on October 12:

380 HSFO – USD/MT – 516.86 (-6.39)
VLSFO – USD/MT – 819.24 (+0.01)
MGO – USD/MT – 1 223.64 (-5.09)

As of October 12, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices and the MABUX digital bunker price benchmark) registered fuel’s underestimation in the HSFO segment in all selected ports, no firm trend in the VLSFO segment, and a sharp decline of MGO LS undercharge margins in Rotterdam and Singapore.

According to the MDI, 380 HSFO fuel grade was underpriced on October 12 in all four selected ports. The undervaluation ratio was: Rotterdam – minus $139 (minus $132 the day before), Singapore – minus $167 (minus $160), Fujairah – minus $180 (minus $186), Houston – minus $92 (minus $96). The MDI index still had no firm dynamics here: up in Fujairah and Houston, but down in Rotterdam and Singapore.

In the VLSFO segment, this type of fuel was overpriced in three out of four ports selected: Singapore – plus $ 66 (plus $ 69 the day before), Fujairah – plus $52 (plus $47) and Houston plus $4 (plus $3). The only underestimated port was Rotterdam – minus $21 (minus $32). The MDI index did not have any firm trend in this fuel segment.

In the MGO LS segment, the MDI index registered the transition of Fujairah to the overprice zone: plus $ 2 versus minus $ 75 a day earlier, where it joined Houston – plus $21 (plus $31). In Rotterdam and Singapore, this fuel grade was undervalued by minus $159 (minus $268) and minus $181 (minus $285), respectively. Both ports recorded a sharp decline of undervaluation margins: $109 in Rotterdam and $104 in Singapore.

We expect firm downtrend to continue in Global bunker market on October 13: 380 HSFO – minus 5-9 USD/MT, VLSFO – minus 8-15 USD/MT, MGO LS – minus 5-45 USD/MT.

Source: www.mabux.com