2021 June 1 09:51
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) continued upward evolution on May 31:
380 HSFO - USD/MT – 428.62 (+1.08)
VLSFO - USD/MT – 530.75 (+3.86)
MGO - USD/MT – 622.37 (+2.32)
MABUX ARA LNG Bunker Index - the average price of LNG as a marine fuel in the ARA region, rose by 2.89 USD on Jun 01 and showed 599.31 USD/MT. The LNG Bunker Index exceeds the price of MGO LS at the Port of Rotterdam by $ 49.31 (550 USD/MT as of May 26) - the margin narrowed by 11 USD. More LNG Bunker Indexes on www.mabux.com.
As of May 31, 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 remained undervalued in all selected ports: from minus $ 14 in Houston (minus $ 16 a day earlier) to minus $ 38 (minus $ 36) in Rotterdam and minus $ 52 (minus $ 58) in Singapore The most significant change in the level of underepricing ratio was recorded in Singapore: a drop by $ 6
VLSFO, based on MABUX DBP Index value, was also underpriced on May 31 in all ports except Houston. The underestimation ranged from minus $ 26 (unchanged) in Rotterdam to minus $ 45 (minus $ 42 a day earlier) in Fujairah and minus $ 49 (minus $ 53) in Singapore. In Houston, the MBP/DBP Index for VLSFO fuel showed a 100-percent correlation.
On May 31, MABUX DBP Index also registered the undercharging of MGO LS in all selected ports, ranging from minus $ 25 (minus $ 27 a day earlier) in Houston to minus $ 47 (minus $ 45) in Rotterdam, minus $ 51 (minus $ 50) in Singapore and minus $ 55 (minus $ 54) in Fujairah. According to DBP Index, the margins of MGO LS underestimation in all ports remained virtually unchanged.
We expect global bunker prices do not have firm trend and may change irregular: 380 HSFO - plus-minus 1-3 USD/MT, VLSFO – plus-minus 2-4 USD/MT, MGO LS – plus 1-4 USD/MT.