According to the weekly outlook of Marine Bunker Exchange (MABUX) for bunker prices, indices showed signs of a possible uptrend. The 380 HSFO index rose by US$11.88 to US$509.6/MT, the VLSFO index remained almost unchanged at US$781.80/MT and the MGO index added US$7.42, reaching US$1,165.19/MT.
“All index changes were still insignificant,” commented a MABUX official.
Meanwhile, the Global Scrubber Spread (SS) weekly average – the price differential between 380 HSFO and VLSFO – continued its firm decline over week 45 – minus US$20.02, reaching US$276.19.
The Rotterdam SS Spread average also dropped by US$20.67 to US$231.83. In Singapore, the average weekly difference in the price of 380 HSFO/VLSFO decreased more significantly by US$42.67 to US$278.50.
“It is expected that the moderate downtrend in SS Spread to continue next week,” said a MAUX representative.
Gas prices in Europe have begun to rise again. As a result, the price of LNG as bunker fuel at the port of Sines in Portugal on 7 November reached US$1,535/MT.
Thus, the price of LNG exceeds the cost of the most expensive traditional bunker fuel by US$369 on 7 November, the price of MGO LS in the port of Sines was quoted at US$1,169/MT.
Over week 45, the MDI Index (comparison of MABUX market bunker prices (MBP Index) vs MABUX digital bunker benchmark (DBP Index) continued to underestimate 380 HSFO fuel in all four selected ports. Undervaluation margins changed irregularly, decreasing in Rotterdam – minus US$141, Singapore – minus US$152 and Fujairah – minus US$199, but rising in Houston – minus US$98.
In the VLSFO segment, MDI registered two ports at once: Fujairah and Houston, moving into the underestimation zone and joining Rotterdam. The undercharge ratio was minus US$6, minus US$1 and minus US$44, respectively. Singapore remains the only overpriced port – plus US$6.
In the MGO LS segment, MDI registered fuel underpricing in three out of four selected ports: Rotterdam – minus US$92, Singapore – minus US$59 and Houston – minus US$18. Fujairah remained the only overpriced port in this fuel segment – plus US$69. The underpricing decreased slightly while the overpricing rose.
“We expect the main bunker indices to head upwards next week,” pointed out Sergey Ivanov, director of MABUX.
