No sustainable trend expected today in global bunker market
MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO) continued uptrend on October 28:
380 HSFO: USD/MT – 499.61 (+4.63)
VLSFO: USD/MT – 799.21 (+2.84)
MGO: USD/MT – 1 191.55 (+5.25)
As of October 28, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) registered undervaluation’s growth above $ 200 in Fujairah in the HSFO segment, the transition of Houston to the underpricing zone in the VLSFO segment, and another significant increase of underpricing in Houston in the MGO LS segment.
According to MDI, 380 HSFO fuel grade remained underpriced on October 28 in all four selected ports. The undercharge ratio was: Rotterdam – minus $173 (minus $164 the day before), Singapore – minus $181 (minus $190), Fujairah – minus $214 (minus $189), Houston – minus $100 (minus $92). In all ports, except for Houston, the MDI index rose moderately, and in Fujairah it exceeded the $200 mark again.
In the VLSFO segment, this fuel grade was overvalued on October 28 in two out of four ports selected: Houston moved into the underpricing zone: minus $ 1 versus plus $ 2 a day earlier, and joined Rotterdam: minus $ 44 (minus $ 38). In other ports, MDI recorded the following overprice margins: Singapore – plus $21 (plus $30), Fujairah – plus $4 (plus $8). The underpricing continued to grow, while the overpricing decreased.
In the MGO LS segment, on October 28, the MDI registered an undercharge on October 28 in three out of four ports selected: Rotterdam – minus $103 (minus $80 the day before), Singapore – minus $75 (no change) and Houston – minus $168 (minus 115). Fujairah remains the only overvalued port in this bunker fuel segment: plus $52 versus plus $68 the day before. The most significant change was another increase of undervaluation in the port of Houston by 53 points.
We do not expect sustainable trend in World bunker market on October 31, irregular fluctuations will prevail: 380 HSFO – minus 2-5 USD/MT, VLSFO – minus 3-9 USD/MT, MGO LS – plus 15-35 USD/MT.