2021 July 21 11:03
The Bunker Review was contributed by Marine Bunker Exchange (MABUX)
380 HSFO - USD/MT – 438.71 (-9.27)
VLSFO - USD/MT – 544.62 (-11.69)
MGO - USD/MT – 634.21 (-14.77)
The MABUX ARA LNG Bunker Index – the average price of LNG as a marine fuel in the ARA region, rose slightly on July 21: 767.49 USD/MT (+0.58 USD). The LNG Bunkering Index exceeds the cost of MGO LS in the port of Rotterdam by 225.49 USD (542 USD/MT as of July 20), the difference in price compared to the day before increased by $ 30.58. LNG bunker indices are available at www.mabux.com.
As of July 20, 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: minus $ 6 in Houston (minus $ 17 a day earlier), minus $ 41 (minus $ 45) in Rotterdam and minus $ 35 (minus $ 53) in Singapore. In Houston, the difference in MBP/DBP indices continues to narrow. The most significant change in 380 HSFO’s MBP/DBP Index was recorded in Singapore (undervaluation down by $ 18).
VLSFO, according to the MABUX DBP Index, was undervalued in three ports on July 20, but the index itself showed significant changes. The underestimation of VLSFO ranged from minus $ 11 (minus $ 37) in Fujairah to minus $ 12 (minus $ 38) in Singapore and minus $ 24 (minus $ 28) in Rotterdam. In general, the underestimation ratio has dropped significantly. In Houston, MABUX DBP Index recorded an overcharge of VLSFO by $ 11 - for the first time since May 24, 2021.
On July 20, MABUX DBP Index also registered the underpricing of MGO LS at three selected ports: minus $ 58 (minus $ 62 a day earlier) in Rotterdam, minus $ 55 (minus $ 74) in Singapore and minus $ 43 (minus $ 61) in Fujairah. In Houston, MABUX MBP/DBP Index registered an overcharge by $ 4 for the first time since April 20, 2021.
We expect global bunker prices may turn into slight upward correction today: 380 HSFO: plus 2-4 USD/MT, VLSFO - plus 4-6 USD/MT, MGO LS - 2-7 USD/MT.