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  • MABUX: Bunker Weekly Outlook, Week 22, 2023
  • 2023 June 1 13:07

    MABUX: Bunker Weekly Outlook, Week 22, 2023

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

    The global MABUX bunker indices displayed a consistent downward trajectory by the end of the 22nd week. The 380 HSFO index decreased by 9.38 USD, falling from 487.89 USD/MT in the previous week to 478.51 USD/MT, and remaining consistently below the 500 USD mark. Similarly, the VLSFO index dropped by 14.30 USD, reaching 590.26 USD/MT compared to 604.56 USD/MT last week, descending below the 600 USD threshold. The MGO index declined by 24.23 USD, from 800.68 USD/MT in the previous week to 776.45 USD/MT, ultimately falling below the 800 USD mark. At the time of writing, the downward trend in bunker indices has persisted.

    The Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - experienced a moderate decline of $4.92, standing at $111.75 compared to $116.67 in the previous week, inching closer to the psychologically significant $100 threshold. At the same time, the weekly average decreased by a lesser amount: minus $2.13. In Rotterdam, the SS Spread, on the other hand, advanced $5.00 to $97.00, still below $100. The weekly average of the SS Spread in Rotterdam added $1.50. In Singapore, the price difference of 380 HSFO/VLSFO also increased by $1.00 ($132 vs. $131.00 last week), while the weekly average increased by $13.84. Overall, SS Spread values remain stable and fluctuate around the $100 mark. More information is available in the "Differentials" section of www.mabux.com.

    The combination of ample inventories at the end of a mild winter, steady imports of LNG, and weak demand has led to eight consecutive weeks of weekly losses in European benchmark natural gas prices, the longest weekly losing streak in more than six years. Besides, currently, gas inventories are comfortably high for this time of the year. As of May 24, natural gas storage sites in the EU were 66.71% full. The level of gas in storage is the highest for this time of the year in at least a decade.

    The price of LNG as bunker fuel showed a significant decline in week 22. In the port of Rotterdam (Netherlands), the price of LNG on May 31 reached 548 USD/MT (minus 83 USD compared to a week earlier). Thus, LNG in Rotterdam is currently priced 116 USD lower than conventional fuel MGO LS (664 USD/MT as of May 31).

    In the port of Sines (Portugal), the price of LNG as bunker fuel remained steady at 742 USD/MT, making it 5 USD cheaper than MGO LS (747 USD/MT as of May 31). The availability of cheaper LNG as an alternative bunker fuel is once again capturing the attention of market participants, making it an attractive choice. More information is available in the LNG Bunkering section of www.mabux.com.

    During week 22, the MDI index (the ratio of market bunker prices (MABUX MBP Index) and the digital bunker benchmark MABUX (MABUX DBP Index)) maintained an undervaluation of 380 HSFO fuel in all four selected ports. Weekly average of the undercharge rose in Rotterdam, Singapore and Fujairah in the range from 1 to 16 points. In Houston, the MDI remained unchanged at minus $39.

    In the VLSFO segment, Singapore remained the only port where overcharge was observed according to the MDI. The overprice average decreased there by 4 points. The remaining three ports were undervalued, with average levels up 7 points in Fujairah and 3 points in Houston, and down 1 point in Rotterdam.

    In the MGO LS segment, three ports remain undervalued: Rotterdam, Singapore and Houston. The average weekly undervaluation level rose in Rotterdam (plus 5 points), but decreased in Singapore and Houston: minus 3 and minus 11 points, respectively. Fujairah remained the only overvalued port, where the revaluation level saw another reduction of minus $16.

    For more detailed information on the correlation between market prices and the MABUX digital bunker benchmark, please refer to the "Digital Bunker Prices" section at www.mabux.com.

    A report published by Climate Analytics and Solutions for Our Climate says that the ‘uptake shipping capacity far exceeds global forecasts of LNG trade as the world transitions away from fossil fuels’ – and consequently many of the LNG carriers now being built could become ‘stranded assets’. The findings of the report were ‘especially relevant’ to South Korea, which dominates the global LNG shipbuilding industry. According to Dongjae Oh, the oil and gas finance program lead at Solutions for Our Climate: ‘The risk is imminent for Korean shipbuilders who are highly reliant on building hundreds of LNG carriers that a net-zero world will not need, and that they may not even be paid for.’ The report says that the current ‘surge’ in orders for LNG carriers has been ‘largely driven by the oil and gas industry’s dash for LNG following conflict in Ukraine’. But it added that: ‘Under growing pressure to decarbonise, governments around the world have announced pledges and adopted policies that would render much of the new LNG vessels useless.’

    We expect there are no uptrend drivers in the global market so far. Bunker indices may show a moderate decline in the upcoming week.

    By Sergey Ivanov, Director, MABUX

2023 September 29

18:03 Holland America Line completes shore power connectivity installation across fleet
17:44 Terminal Cuenca del Plata investing $600 million Montevideo port expansion
17:25 EC Commission leads common efforts to improve state of Baltic Sea
16:36 New W-MAX Class LNG carrier for Petronas LNG delivered
16:04 Van Oord appoints new CFO
15:44 MOL takes delivery of very large LPG/ammonia carrier from Namura Shipbuilding
15:24 Vale and Petrobras sign Protocol of Intent to accelerate the development of low-carbon solutions
14:48 Skarv Shipping orders 4 short-sea low-carbon, multipurpose vessels
14:24 bound4blue to install three suction sails on Ville de Bordeaux
13:21 Port of London welcomes the world’s first methanol-fuelled container vessel
12:51 MacGregor to deliver a large order of RoRo equipment for two of the world´s first Pure Car and Truck Carriers using methanol
12:31 NYK to trial mooring system to suppress hull shaking with JERA and Trelleborg Marine Systems
12:14 Development Way arrives at Nakhodka Bay to start construction of chemical terminal
11:52 Praxis Automation receives an order from Rawabi Vallianz Offshore Services to equip the entire offshore fleet with dynamic positioning systems
11:25 Arkhangelsk and Olya seaports increased their throughput in 8M’23 by 58% YoY
11:15 Singapore named “Best Global Seaport” and “Best Seaport in Asia”
11:01 United Shipbuilding Corporation conducts audit of previously signed contracts
10:52 MABUX: Bunker Weekly Outlook, Week 39, 2023
10:44 ClassNK updates "Guidelines for Fuel Cell Power Systems On Board Ships"
10:20 Kalmar to supply Rotterdam Short Sea Terminals with six hybrid straddle carriers
09:59 Baltic Fleet's anti-submarine ships launch planned exercise
09:22 Baltic Fleet's ships conduct air defence exercise in naval station
09:13 MAN Energy Solutions receives an order from China Merchants Heavy Industry for six methanol GenSets

2023 September 28

18:07 ABS, Crowley agree to jointly explore advance augmented reality technology for maritime
17:44 Saudi EXIM Bank and Trafigura sign credit facility agreement
17:41 FESCO increased cargo transportation between Commercial Port of Vladivostok and Petropavlovsk-Kamchatsky by 6% YTD
17:13 Samskip and Boluda Lines join forces to launch new Spain-Ireland-UK service
17:00 Sakhalin-2 is ready to become a centre of competence for integrated field development
16:12 China ports container volume rises 4.8% from January to August 2023
16:06 Andrey Kostin asked RF Minister of Finance to “plug old financial holes” in USC
15:44 WinGD wins first approval in principle for ammonia two-stroke engine
15:23 Vopak repurposes existing infrastructure to support energy transition in California
14:53 VSE Corporation announces mutual agreement to terminate the sale of the VSE Federal and Defense segment to Bernhard Capital Partners
14:25 Sakhalin Energy enters into tripartite safety and security agreement
14:03 New Ro-Ro Vessel arrives at Shuwaikh Port following launch of Ro-Ro shipping service from Khalifa Port
13:56 CMA CGM orders eight methanol-fuelled containerships at Shanghai Waigaoqiao Shipbuilding
13:32 China Classification Society issues the first factory approval certificate for the marine methanol dual-fuel boilers
13:12 LR approves first methanol fuel cell system to be installed on an Italian yacht
12:55 Key focus of Day 1 of Global Fishery Forum & Seafood Expo Russia was on promotion of Russian products to various markets
12:41 Fincantieri delivers the third PPA “Raimondo Montecuccoli” in Muggiano
12:13 Shanghai Waigaoqiao Shipbuilding signs a contract for the construction of eight methanol-powered 9,200 TEU containerships
11:23 CHIMBUSCO introduces two new marine methanol fuel bunkering group standards with completion of China’s first green methanol refueling technology chain
11:22 Glavgosexpertiza approves Phase 1 of infrastructure facilities reconstruction in Sakhalin based port of Korsakov
10:43 Brunvoll picks Leclanche to provide battery storage system for Norwegian ferry
10:29 Diana Shipping announces the order of two 81,200 dwt methanol dual fuel Kamsarmax dry bulk vessels
10:08 Additional RUB 3.6 billion to be allocated for development of railway approaches to Azov and Baltic Sea ports
09:55 Baltic Hub handled its 20-millionth container
09:24 Two logistics complexes to appear in Chukotka based anchor towns of NSR by 2028

2023 September 27

18:06 Mawani wins two awards at LTA 2023
17:57 Russia expanded fish exports geography to 80 countries this year
17:43 HAROPA PORT to create a new multimodal platform, 40 km from Paris
17:33 Russian Maritime Register of Shipping shares its business agenda at NEVA-2023
17:26 174 export terminals to focus on converting hydrogen into ammonia by 2035 - Rystad Energy
17:12 Sener develops the conceptual and basic engineering of two vessels with carbon capture systems for Grona Shipping
16:45 Maritime Partners acquires U.S. Marine Management from Maersk Line
16:24 Additional $8 billion to $28 billion to be required annually to decarbonize ships by 2050: UNCTAD report
15:39 QatarEnergy signs new LNG ship-building agreement valued at QR14.2 billion with HD Hyundai Heavy Industries
15:39 Amur Shipyard launches two small missile ships of Project 22800, Rzhev and Udomlya
14:45 Value Maritime сompletes first filtree system installation in China for Ardmore Shipping
14:13 GTT receives an order from Jiangnan Shipyard for the tank design of two new LNG сarriers
13:13 GTLK: fully operational ship repair complex in Murmansk Region to dock 90 ships per year
12:41 ABS grants AiP to Samsung Heavy Industries for cyber resilience
12:24 ​Argeo and Shearwater form strategic alliance to transform subsea and ocean bottom seismic markets
11:41 ABS and AL Group to study Ultramax bulker methanol fuel conversion
11:38 Investments in Rosmorport’s ship repair base in the port of Ust-Luga is estimated at RUB 4 billion
11:05 Equinor and OMV agree new long-term gas sales agreement
10:55 PortNews Media Group welcomes to visit its stand at VI Global fishery forum & seafood expo Russia
10:40 Enova provides NOK 709 million in support for emission-free maritime transport
10:09 Galp takes final investment decision on green hydrogen and HVO/SAF projects
09:36 Ship repair companies are ready to unite in an association