“Over the Week 36 MABUX global bunker indices showed a moderate decline,” noted Sergey Ivanov, director of Marine Bunker Exchange (MABUX).
The 380 HSFO index fell by US$20.05 last week, the VLSFO index fell by US$22.56 and the MGO index lost US$16.75.
The Global Scrubber Spread (SS) weekly average – the price differential between 380 HSFO and VLSFO – fell slightly over Week 36 by US$$3.36 (vs US$261.79 last week). In Rotterdam, the average SS Spread, on the contrary, rose moderately at US$212.17 (vs US$207.33). In Singapore, the average weekly price differential of 380 HSFO/VLSFO showed a downtrend, losing US$$12.33 (vs US$272.50).
“In general, SS Spread still does not have any stable trend,” pointed out Ivanov.
Natural gas prices in Europe are still at record levels. The European Union approved a bloc-wide 15% gas consumption reduction plan, which is voluntary but if the cuts do not materialise could become obligatory. Meantime, LNG as a bunker fuel at the port of Sines in Portugal fell on 5 September by US$823/mt to US$3,942/mt. LNG prices are still more than three times higher than the most expensive type of traditional bunker fuel: the price of MGO LS at the port of Sines was quoted on 7 September at US$1,211/mt.
Over Week 36, the MDI index (comparison of MABUX MBP Index (market bunker prices) vs MABUX DBP Index (MABUX digital bunker benchmark)) showed an undervaluation of 380 HSFO fuel in all four selected ports: Houston moved into the undervaluation zone with a minus US$13. In other ports, the underestimation grew slightly and amounted to: Rotterdam – minus US$66, Singapore – minus US$127 and Fujairah – minus US$118.
VLSFO fuel grade, according to MDI, remained, on the contrary, overpriced in all four selected hubs: plus US$15 in Rotterdam, plus US$27 in Singapore, plus US$54 in Fujairah and plus US$48 in Houston. “Downward trend in overcharge margins continued in all ports,” Ivanov said.
As for MGO LS, MDI registered an overpricing of this fuel grade in two ports out of four selected: Houston joined Fujairah – plus US$18 and plus US$150, respectively. In Rotterdam and Singapore, MGO LS fuel remained undervalued: minus US$35 and minus US$78. Undervaluation as well as overvaluation ratio grew moderately in all ports.
“There are no upward drivers in the global bunker market so far. We expect fuel prices to fluctuate about the present levels,” Ivanov concluded.
