• 2024 May 23 13:18

    MABUX: Bunker Outlook, Week 21, 2024

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

    In Week 21, the MABUX global bunker indices showed irregular changes with no clear trend. The 380 HSFO index decreased by a symbolic 0.13 USD: from 544.26 USD/MT last week to 544.13 USD/MT. The VLSFO index fell by 2.53 USD (654.27 USD/MT versus 656.80 USD/MT last week). The MGO index, on the contrary, increased by 3.63 USD (from 838.55 USD/MT last week to 842.18 USD/MT). At the time of writing, a steady downward trend was observed in the global bunker market.

    The MABUX Global Scrubber Spread (SS) - the price difference between 380 HSFO and VLSFO - returned to a moderate decline: minus $2.40 ($110.14 versus $112.56 last week), gradually approaching the $100.00 mark (SS Breakeven). The weekly average also fell by $0.95. In Rotterdam, SS Spread, on the contrary, showed growth: plus $8.00 (from $86.00 last week to 94.00), also gradually rising to the $100.00 mark. The port's weekly average rose by $1.17. In Singapore, the 380 HSFO/VLSFO price differential narrowed unexpectedly to minus $19.00 ($85.00 versus last week's $104.00), falling below $100, with the weekly average down $5.67. Thus, the dynamics of the SS Spread still lack pronounced dynamics. In the near future, we expect a further reduction in SS Spread to levels below $100 SS Breakeven. More information is available in the "Differentials" section of www.mabux.com.

    In April 2024, worldwide LNG imports reached a record high of 34.52 million metric tons (Mt), marking a 1.7% increase (0.58 Mt) year-on-year. The Asia Pacific and LAC regions spearheaded this surge, compensating for a significant downturn in European LNG imports. From January to April 2024, global LNG imports grew by 2.9% (3.98 Mt) year-on-year, totaling 142.52 Mt. During Week 21, the European gas benchmark TTF continued its moderate growth, adding 3.335 EUR/MWh (33.004 EUR/MWh versus 29.669 EUR/MWh last week).

    The price of LNG as bunker fuel in the port of Sines (Portugal) continued its upward trend, reaching 728 USD/MT on May 20, an increase of 32 USD compared to last week. Simultaneously, the price difference between LNG and conventional fuel on May 20 decreased to 89 USD in favor of LNG, down from 117 USD the previous week. On that day, MGO LS was quoted in the port of Sines at 817 USD/MT. More information is available in the LNG Bunkering section of www.mabux.com.

    In Week 21, the MDI index (the correlation ratio of market bunker prices (MABUX MBP Index) vs. MABUX digital bunker benchmark (MABUX DBP Index)) registered the following trends across the major world hubs: Rotterdam, Singapore, Fujairah and Houston:

    In the 380 HSFO segment, all selected ports were in the undercharge zone. Weekly averages fell 3 points in Singapore and 2 points in Fujairah but rose 5 points in Houston. The MDI index in Rotterdam remained changed.

    In the VLSFO segment, according to the MDI, all ports remained undervalued, with average weekly levels showing an increase of 4 points in Singapore and 3 points in Houston, and a decrease of 2 points in Rotterdam and 1 point in Fujairah. Fujairah's indices remained at 100 percent correlation between the market price and the MABUX digital benchmark.

    In the MGO LS segment, Houston was the only overvalued port, with the weekly average rising 2 points, while the index remained near the 100 percent correlation mark between market price and the MABUX digital benchmark. All other ports were undervalued. Average weekly margins showed a further 6-point decline in Rotterdam, but an increase of 5 points in Singapore and 2 points in Fujairah. The MDI index in Singapore exceeded the $100 mark again.

    At the end of the week, the balance of overvalued/undervalued ports in all market segments did not change, while underpricing remained the prevailing trend.

    For more details on the correlation between market prices and the MABUX digital benchmark, visit the “Digital Bunker Prices” section on www.mabux.com.

    JLC reported, that in April, Chinese refiners produced approximately 1.2 million metric tons (mt) of Very Low Sulfur Fuel Oil (VLSFO), a decrease from the 1.4 million mt produced in March. This represents a 9% decline in the daily average VLSFO output, down to 41,000 mt/day. The reduction in VLSFO production is attributed to increased seasonal maintenance activities at refineries. Consequently, this has led to a constrained supply of VLSFO for bunkering in Zhoushan, a major Chinese port, with suppliers suggesting lead times of 5-7 days due to the lower output and limited barge availability. To support future VLSFO production, the Chinese government has issued 4 million mt in export quotas for bonded bunkering, as part of the second allocation round for the year. These new export quotas are anticipated to enhance VLSFO output later in the year.

    We expect downward trend to prevail in the global bunker market next week.

    By Sergey Ivanov, Director, MABUX

2024 June 25

18:00 MOL announces consolidation of equity-method affiliate company Gearbulk
17:25 Baltic Workboats selects Genevos as hydrogen fuel cell supplier
16:54 VIKING ambulance boat order adds to Greek island health care performance
15:56 Liquipar Operações Portuárias to invest $106m in the Port of Paranaguá
15:33 GTT receives an order from Hudong-Zhonghua Shipbuilding for the tank design of ten new very large LNG carriers
14:53 Hamburg Commercial Bank acquires NIBC’s shipping business
14:22 HD Hyundai gets global ship cyber security certifications
13:52 EemsEnergyTerminal may be kept at Eemshaven for longer for security of energy supply and the energy transition
13:22 TMC to supply ALS compressors to NYK’s LNG carriers
12:40 Danske Commodities and Solar Park Kasso sign agreement to optimise world’s largest commercial Power-to-X facility
12:03 Australian Government orders an additional two Guardian-class Patrol Boats for Pacific Maritime Security Program
11:44 Port Houston container volumes up 21 percent to 364,866 TEUs in May
11:03 Kongsberg Maritime expands its retractable thruster line
10:30 China-made icebreaker research vessel delivered in Guangzhou
10:10 Finnlines upgrades route between Sweden and Germany
09:46 Blue World completes successful testing of 200 kW maritime fuel cell system to run on green methanol

2024 June 24

18:06 World’s first methanol dual-fuel retrofit container ship delivered
17:10 New eco-friendly bulk carrier delivered to GOGL
16:30 HD KSOE close to intaking 4.8 trillion won worth order from CMA CGM
16:03 MAN Cryo supplies fuel system for world’s first hydrogen-powered superyacht
15:42 Global offshore wind capacity reaches 75 GW
15:26 Yemen's Houthis claim attack on four ships at Israel's Haifa port
14:56 Wison New Energies signs the EPCIC contract with Genting Group for the delivery of a FLNG facility
13:56 India's GRSE signs an agreement with Carsten Rehder Schiffsmakler and Reederei for the construction and delivery of four multi-purpose vessels
12:58 EU adopts 14th package of sanctions against Russia
12:33 Port of Valencia container volumes up 12.05% to 516,674 TEUs in May 2024
11:58 MSC Cruises carbon intensity cut by 6.5% in 2023
11:32 Western Baltija Shipbuilding starts construction of the first hydrogen-electric ship for Klaipeda State Seaport Authority
10:45 QatarEnergy enters 10-year naphtha supply agreement with Japan’s ENEOS Corporation
10:25 TotalEnergies wins further maritime lease in the North Sea to develop 1.5 GW of offshore wind

2024 June 23

15:42 Auramarine inks representative agreement with Hagedorn Products & Systems GmbH and Hagedorn Service & ENgineering GmbH, Germany
13:06 Drewry: Freight rates from China will continue to rise next week
11:34 Enova finance granted to new ammonia-fuelled gas carrier operation
09:37 MSC signs shore power deal in Hamburg

2024 June 22

15:47 MSC launches new Dahlia service for Asia to Mexico trade
13:29 BV hosts its 25th Hellenic and Black Sea Committee
12:24 HD KSOE develops scrubber technology for ammonia-fueled ships
10:04 Lloyd’s Register grants AiP to HD KSOE for novel ammonia fuel supply system

2024 June 21

18:09 HGK Shipping names future-fuel-ready dry goods inland waterway vessel
17:53 Chinese shipyards’ plans for next-generation ships
17:41 Emanuele Grimaldi re-elected as Chairman of the International Chamber of Shipping
16:40 MAN Energy Solutions rejoins SEA-LNG
16:20 India to create $9bn mega port near Mumbai
15:58 Hanwha acquires U.S. Philly Shipyard for $100 million
15:25 DP World completes $400m Сallao Port expansion
14:10 Var Energi, OMV Norge and Lime Petroleum awarded CO2 storage licence in North Sea
13:44 Creos Luxembourg, Fluxys and GRTgaz announce the inclusion of project HY4Link in the European hydrogen network development plan
12:43 Fincantieri and Viking sign contracts for two cruise ships
12:25 First of two new-generation emergency response vessels delivered to Hong Kong Fire Service
12:16 MPA clarifies on liability claims for pollution damage
11:59 A fleet of four Union Maritime tankers to be fitted with Norsepower Rotor Sails
11:38 PortNews Media Group celebrates its 20-year anniversary
11:25 TotalEnergies launches the Ubeta gas development to supply Nigeria LNG liquefaction plant
11:13 SMST secures contract from Cochin Shipyard for mission equipment for North Star SOV
10:38 Lloyd’s Register and the World Liquid Gas Association issue report on the future of dual-fuel LPG engines
10:17 Equinor secures exploration permit for CO2 storage in Denmark
09:56 CMA CGM to reshuffle EURONAF & TMX 2, linking Turkey, Spain, France, Malta, Western Italy, Sicily, Algeria
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2024 June 20

18:06 Mammoet begins assembly of world’s biggest land-based crane
17:41 KEZAD Group signs lease agreement with Astha Biotech for AED 44m Microalgae Plant in Abu Dhabi
17:28 DNV's SRC software service launches in Europe
16:19 Equinor awarded two new CO2 storage licenses in the North Sea
16:15 Saudi Global Ports expands capacity with new QC and RTG cranes
15:31 Naftemporiki: Tanker prices on secondary market show signs of stabilization
15:11 Kuala Baram dredging project will improve Miri Port
14:29 A consortium of DEME and Hellenic Cables secured large contract for Princess Elisabeth Island
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13:18 Norway and Singapore partner to enhance green maritime collaboration
13:05 Jan De Nul wins contract to supply, install and test three 220 kV AC cables
12:31 MPA reports considerable progress in oil spill recovery efforts