The combination of scrubbers and 380 HSFO seems more attractive to the shipowners after the global scrubber spread (the price difference between 380 HSFOs and VLSFOs) widened this week.
The global bunker market has shown signs of moderate growth over the past seven days, but there is still no firm ground for a sustained uptrend, according to the Marine Bunker Exchange (MABUX).
There are also challenges in the form of rising virus cases and easing euphoria about vaccine amid efficacy concerns, which can make bunker prices vulnerable to some correction.
The World Bunker Index MABUX demonstrated firm upward evolution for a week with the 380 HSFO index rising to US$329.85/MT, VLSFO increased to US$406/MT while MGO reached US$474.90/MT.
At the same time, the scrubber spread also increased by US$4.21 and reached US$71.64.
The correlation of Market Bunker Prices Index (MBP) vs MABUX Digital Bunker Prices Index (DBP) in the four largest hubs (Rotterdam, Singapore, Fujairah and Houston) over the past seven days has not undergone significant changes; 380 HSFO and VLSFO were overvalued slightly in almost all selected ports.
The exception was Rotterdam, where 380 HSFO was on average undervalued by US$6. Converesely, MGO LS remained undervalued in all ports in a range of minus US$15-26, with the exception of Houston, where was still registered an average overvaluation of US$8.
MABUX noted in its weekly report that Finnish state-owned gas company, Gasum Oy, believes relatively small investments may be needed to complete the supply chain for liquefied natural gas (LNG) as a maritime fuel. However, the economic downturn stemming from the Covid-19 pandemic may hamper demand growth by slowing investment decisions in building new LNG-fuelled ships or conversions of existing vessels, said MABUX.
Despite that, the number of LNG-fuelled vessels in operation and on order has reached 230 at present, up from 162 at the end of 2019, according to DNV GL.
