MABUX World Bunker Index (as index calculated on current prices for 380 HSFO, VLSFO and MGO in the main world hubs) continued slight irregular changes on Aug. 30:

380 HSFO – USD/MT – 593.38 (+1.08)

VLSFO – USD/MT – 861.92 (-1.66)

MGO – USD/MT – 1 240.62 (-7.07)

As of August 30, the MABUX MBP/DBP Index (MDI) (comparison of market bunker prices vs. the MABUX digital bunker price benchmark) showed the transition of all four selected ports to the undercharge zone in the HSFO segment, the move of the Port of Rotterdam to the underprice zone in the VLSFO segment and insignificant changes of MDI index in the MGO LS segment.

380 HSFO fuel grade, as per MDI, was underestimated on August 30 in all four selected ports: Houston joined the other three hubs – minus $ 18 versus plus $ 10 the day before. In other ports, the underestimation premium was: Rotterdam – minus $57 (minus $42), Singapore – minus $125 (minus $93), Fujairah – minus $127 (minus $113). The underestimation ratio continued to grow slightly.

In the VLSFO segment, one of the ports – Rotterdam – moved into the undervaluation zone: minus $14 vs. plus $31 a day earlier. All other ports remained overcharged: Singapore – plus $13 (plus $55), Fujairah – plus $32 (plus $79) and Houston – plus $31 (plus $53). Overprice margins declined substantially with a maximum minus 45 points at Rotterdam.

In the MGO LS segment, three ports: Rotterdam, Singapore and Houston were in the undervaluation zone on Aug.30: minus $ 37 (minus $ 35 the day before), minus $ 93 (minus $ 72) and minus $ 2 (100-percent correlation of indices the day before) respectively. Fujairah remains the only overvalued port – plus $121 (plus $123). The levels of underestimation, as well as overestimation ones, have changed insignificantly.

We expect the world bunker market to face a fairly strong drop in price indices on Aug.31: 380 HSFO – minus 15-30 USD/MT, VLSFO – minus 15-35 USD/MT, MGO LS – minus 20-50 USD/MT.

Source: mabux.com