MABUX: Bunker indices to turn into upward trend on Sep 23

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) continued irregular changes on September 22:

380 HSFO – USD/MT – 519.40 (+0.64)
VLSFO – USD/MT – 782.56 (-3.28)
MGO – USD/MT – 1 103.74 (-10.96)

380 HSFO fuel grade, according to MDI (comparison MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark), were undervalued on Sep. 22 in all selected ports. The underestimation premium was registered as: Rotterdam – minus $92 (minus $106 the day before), Singapore – minus $147 (minus $146 the day before), Fujairah – minus $141 (minus $160 the day before), in Houston – by minus $64 (no changes). The underestimation level declined in half of selected ports. The most significant changes were registered in Rotterdam and Fujairah, where the undercharge level decreased by 14 and 19 points respectively.  

In the VLSFO fuel grade segment, all four selected ports, according to the MDI index, were in the overcharge zone: Rotterdam – plus $11 (plus $12 the day before), Singapore – plus $56 (plus $53 the day before), Fujairah – plus $59 (plus $50 the day before) and Houston plus $39 (plus $25 the day before). As per MDI – upward trend prevails in the VLSFO segment: the overcharge premium increased in all selected ports except of Rotterdam. The most significant changes were registered in Houston, where the overcharge level increased by 14 points.

MGO LS was undercharged in three out of four selected ports: in Rotterdam – by minus $26 (minus $22 the day before), in Singapore – by minus $64 (minus $58 the day before), in Houston – by minus $12 (minus $11 the day before). This fuel grade remained overcharged in Fujairah – by plus $203 (plus $214 the day before). MDI index in MGO LS segment declined in all selected ports. The most significant changes were registered in Fujairah, where the overcharge level declined by 11 points.

We expect Global bunker prices may turn into upward changes on September 23: the price for 380 HSFO may increase by 2-4 USD/MT, VLSFO – by 3-5 USD/MT, MGO LS – may rise by 15-25 USD/MT.

Source: www.mabux.com