2021 May 25 10:13
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) turned into firm upward phase on May 24 after having downward movement on May 21:
380 HSFO: USD/MT – 420.66 (+8.00)
VLSFO: USD/MT – 517.65 (+7.19)
MGO: USD/MT – 610.89 (+2.82)
MABUX ARA LNG Bunker Index, calculated as the average price of LNG as a marine fuel in the ARA region, added 1.19 USD on May 25 and showed 607.67 USD/MT (+1.19 USD). The LNG Bunker Index exceeds the price of MGO LS at the Port of Rotterdam by $ 86.67 (521 USD/MT as of May 24). More LNG Bunker Indexes on www.mabux.com.
As of May 24, a correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (Digital Bunker Prices Benchmark) in four largest global hubs showed that 380 HSFO fuel stayed undervalued at all selected ports: from minus $ 5 in Houston (plus $ 2 on May 21) to minus $ 40 in Rotterdam (minus $ 38) and minus $ 54 in Singapore (minus $ 51). The margin of 380 HSFO undercharge has changed insignificant.
VLSFO, according to the MABUX DBP Index, was undercharged at three selected ports ranging from minus $ 26 (minus $ 20 on May 21) in Rotterdam to minus $ 49 (minus $ 43) in Singapore. The level of underestimation increased slightly. The only port where the MABUX DBP Index still shows an overprice of this fuel grade is Houston (plus $ 13 versus plus $ 22 on May 21).
On May 24, MABUX DBP Index also registered the undercharging of MGO LS in all selected ports, ranging from minus $ 14 (minus $ 12 on May 21) in Houston to minus $ 56 (unchanged) in Rotterdam, minus $ 42 (minus $ 44) in Singapore and minus $ 47 (minus $ 55) in Fujairah. In general, the correlation of MABUX MBP Index vs MABUX DBP Index for all selected ports changed insignificantly on May 24.
We expect global bunker prices may continue rising firmly today: 380 HSFO may up by 11-15 USD/MT, VLSFO – by 14-19 USD/MT, MGO LS – by 10-16 USD/MT.