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  • MABUX: Bunker Weekly Outlook, Week 06, 2023
  • 2023 February 9 14:09

    MABUX: Bunker Weekly Outlook, Week 06, 2023

    The Weekly Outlook was contributed by Marine Bunker Exchange (MABUX)

    Over the Week 06, MABUX global bunker indices continued firm downtrend. The 380 HSFO index fell by 7.96 USD: from 484.38 USD/MT last week to 476.42 USD/MT. The VLSFO index, in turn, decreased by 20.64 USD (700.07 USD/MT versus 720.71 USD/MT last week), coming close to 700 USD mark. However, the most significant decline was registered in the MGO Index: minus 52.06 USD (from 1040.54 USD/MT last week to 988.48 USD/MT). At the time of writing, the market demonstrated uptrend resumption.

    The Global Scrubber Spread (SS) - the price differential between 380 HSFO and VLSFO - declined moderately over the Week 06 - minus $12.68 ($223.65 vs. $236.33 last week), while the average also decreased by $3.84. In Rotterdam, the SS Spread fell by $16.00 to $195.00 (vs. $211.00 last week), dropping below $200. In Singapore, the 380 HSFO/VLSFO price difference saw the biggest decline, minus $23 to $255. At the same time, the SS Spread weekly averages in Rotterdam and Singapore remained virtually unchanged. Further information is available in the "Differentials" section at www.mabux.com.

    Still, European gas prices are well below the records seen last year due to the mild weather at the start of the winter heating season, continued strong LNG inflows, and a rebound in Norwegian pipeline gas flows. Gas storage sites across Europe were more than 71% full as of February 1ю That’s well above the five-year average for this time of the year.

    The price of LNG as bunker fuel фе the port of Sines (Portugal) decreased slightly and reached 1387 USD/MT on February 06 (minus 59 USD compared to the previous week). The price difference between LNG and conventional fuel was 448 USD as of February 06: MGO LS at the port of Sines was quoted at 939 USD/MT that day. The price difference remains significant and is unlikely to change drastically in the short term.

    Over the Week 06, the MDI index (correlation of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index)) registered underestimation of fuel 380 HSFO at all four selected ports. Underprice premium widened moderately and amounted to: in Rotterdam - minus $ 117, Singapore minus $134, Fujairah minus $172 and Houston minus $81.

    In the VLSFO segment, according to MDI, three selected ports: Singapore, Fujairah and Houston are still in the overcharge zone: plus $47, plus $30 and plus $34, respectively. Rotterdam remains the only port where VLSFO is undervalued: minus $24. Overcharge margins have slightly increased, while underpricing has not changed.

    In the MGO LS segment, Houston moved back into the overprice zone joining Fujairah: plus $39 and plus $176, respectively. In the other two ports, the MDI index registered an underestimation of MGO LS: Rotterdam - minus $ 73, Singapore - minus $ 72.

    More information on the correlation between market prices and the MABUX digital benchmark is available in the “Digital Bunker Prices” section at www.mabux.com.

    According to DNV, there were no new confirmed orders for LNG-fuelled ships in January. Despite the absence of LNG-fuelled vessel orders last month, DNV highlighted a drop in gas prices to a level where LNG bunkering is for the time being getting more competitive. January did see two methanol fuelled bulk carriers ordered by Cargill. The total number of LNG-fuelled ships ordered in 2022 fell slightly year-on-year, from 240 in 2021 to 222.

    The EU embargo on imports of refined petroleum products from Russia came into effect on Sunday, February 5. However, Russia had diverted most of its fuel oil and vacuum gasoil (VGO) exports to Asia and the Middle East even before the EU embargo. Last month, the European Union took less than 5% of Russia’s fuel oil and VGO, with Greece, Latvia, and Italy importing small volumes of those products, and these volumes could easily be redirected to other destinations, mostly in Asia, as well. For now, we expect Global bunker indices keep the potential for uptrend next week.

    By Sergey Ivanov, Director, MABUX

2023 March 25

15:13 GTT secures contracts for its cutting-edge Sloshing Virtual Sensor solution with two major European LNG ship-owners
13:11 Korea’s No. 1 LNG Shipping company likely to see overseas buyer
11:06 HHLA calls for final approval of China's Cosco investment in Hamburg port - Reuters
09:59 Carsten Poppinga to become Uniper's new CCO, Michael Lewis to take over as CEO on 1 July

2023 March 24

18:28 IAA PortNews’ summary of past week news
18:05 Damen Maaskant offers future-proof solution for tropical shrimp fishermen
17:41 Stolthaven Terminals joins the Ammonia Energy Association
17:16 Silversea Cruises and MEYER WERFT celebrate the keel laying of Silver Ray
17:07 Sea terminal to be built in Novorossiysk under concession scheme
16:55 Ocean Thermal Energy Conversion demonstration project in Okinawa selected by Japan's Ministry of the Environment
16:34 Channel Ports and DFDS join forces to decarbonise cross-Channel transport
16:34 New ferry Stanislav Agapov to start operation in Ust-Kamchatsk in spring 2024
16:13 Annual capacity of ports Olya and Makhachkala to be increased by 5.6 million tonnes
15:49 WinGD to deliver methanol engines for COSCO SHIPPING Lines container vessels
15:25 Ministry of Energy reports 20-pct decrease of coal industry’s negative impact on water bodies over recent 5 years
15:03 Liberty Lines’ hybrid ferry order at Astilleros Armon expands to twelve
14:51 Nakhodka shipyard estimates readiness of crab catcher Kapitan Khazan of Project CCa5712LS at 86%
14:34 New hybrid ferry 'P&O Pioneer' docks at DP World Limassol for bunkering
14:13 China's Xinxing to invest $2 bln in Suez Canal Economic Zone
13:42 Port of Antwerp-Bruges and Port of Amsterdam join forces with Routescanner
13:08 Maersk signs MOU with Shanghai International Port Group on green methanol bunkering
13:02 Livestock Express renews and upgrades its agreement with Wartsila to improve vessel reliability
12:58 Marine Engineering Center SPb expects construction of Volga-Don Extra Max class ships to begin in 2023
12:37 Austal Philippines delivers largest ever, high-speed catamaran constructed by Austal to Molslinjen
12:13 Lineas and DFDS join forces to transport containers and trailers from Ghent in North Sea Port by rail
11:12 Elnusa signs Mou with Khan for offshore platform decommissioning project
10:56 Construction of dry port in Rostov Region is under consideration
10:41 TECO 2030 signs an MOU with an undisclosed party for up to 50MW of hydrogen engines
10:25 Damen announces technical acceptance of Damen CSD650 and MuC1506
10:20 Creating transport and logistics corridors is an important element in RF Government’s effort to open up our economy – Mikhail Mishustin
09:52 A broad spectrum of support mechanisms expanded and revived to finance import substitution — RF Prime Minister
09:29 Rosmorrechflot head set a task to reduce the construction time of Pionersky terminal

2023 March 23

18:18 Port of Aberdeen hosts more than 100 vessels working on offshore wind projects in 2023
17:51 China surged its coal imports in January-February 2023
17:45 Peel Ports acquires HES Humber Bulk Terminal
17:23 US-led alliance launches drone patrols to monitor Gulf energy shipping lanes - S&P Global Commodity Insights
17:14 China’s crude oil imports in January-February 2023 fell by 1.3% YoY
17:10 CMA CGM commences the only direct Japan-U.S. East Coast Service
16:48 Admiralteiskie Verfi shipyard held the first start of the main engine on Mekhanik Sizov trawler of Project СТ-192
16:47 IMO Secretary-General updated on Black Sea Grain initiative
16:22 BV-classed hybrid ferries with battery and solar power to be deployed in Hong Kong
16:16 Finland lifts arrest of Russian fertilizers in the port of Kotka
16:03 Port of Cork accelerates digitalisation with new AI-powered port system
15:25 “K” Line to install automated kite system on the coal carrier Corona Citrus
14:22 Return of railway ferry Baltiysk to Ust-Luga-Baltiysk line postponed to April 2023
14:03 Samskip starts a new innovative project that will reduce CO2 emissions for its vessels
13:27 European Council and the European Parliament announces new agreement to decarbonise the maritime sector
12:50 Global decrease of investments in oil and gas sector to result in shortage of facilities in 3-5 years
12:43 Ports of Stockholm explores safety aspects of autonomous shipping in innovative research project
12:29 Six сompanies team up to build, operate Japan's 1st methanol-fueled coastal tanker
11:42 Port of Oakland joins clean energy trade mission
10:55 Russian ship carrying a cargo of fertilizers detained in the Finnish port of Kotka
10:41 Hamburger Hafen und Logistik revenue up by 7.7 percent to € 1,578.4 million in 2022
10:32 Russian Railways increased volume of Pacific seafood shipments from Primorye by 6% in January-February 2023
10:25 Hyundai Heavy achieves world's first 200 million BHP milestone
09:57 Agency for Strategic Initiatives to support production of high-speed hydrofoils
09:20 Nevsky Shipyard lays down third serial tanker of Project 23130 for RF Defence Ministry

2023 March 22

19:19 MSCC Bronka (Saint-Petersburg) sold to Moscow company NKK-Logistik
17:30 Direct service from China to Saint-Petersburg launched by Transit
17:06 JERA and Virya Energy reach an agreement for the acquisition of Parkwind by JERA