China’s very low sulphur fuel oil (VLSFO) exports have totalled 1.45 million tonnes in September, a 16% increase over the same month of 2020, according to Reuters report, while imports into bonded storage, which includes high and low sulphur fuel oil, totalled 611,495 tonnes.
For the period January to September exports rose by 39% over the previous year, reaching 14.66 million tonnes, according to data from China’s General Administration of Customs, which also indicated that fuel oil imports under general trade were 515,165 tonnes.
“These volumes were supported by demand from some independent refiners for use as a feedstock to process into fuels, due to stricter crude oil import quotas,” issued a release.
Meanwhile, the Marine Bunker Exchange (MABUX) World Bunker Index during week 42 continued its firm upward trend with 380 HSFO index rising to US$542.42/MT, VLSFO index increasing to US$647.93/MT and MGO index growing to US$774.55/MT.
In addition, the average weekly Global Scrubber Spread (SS) – the difference in price between 380 HSFO and VLSFO – increased during the week, amounting to US$103.05.
Meantime, the average weekly SS Spread in Rotterdam also increased to US$109.33, while in Singapore, it grew to US$96.
The correlation of MABUX MBP Index (Market Bunker Prices) vs MABUX DBP Index (MABUX Digital Benchmark) in the four global largest hubs over the past week showed that 380 HSFO fuel was overvalued in all selected ports (except Houston), where the index recorded an underpricing of US$9.
In other ports, 380 HSFO was overcharged: in Rotterdam – plus US$23, in Singapore – plus US$33 and in Fujairah – plus US$21.
VLSFO fuel grade, according to the MABUX MBP / DBP Index, was in the overvaluation zone in three of four selected ports: In Rotterdam by plus US$10, in Singapore by plus US$4 and in Houston by plus US$4. In Fujairah MABUX MBP Index for this fuel-grade 100% correlates to DBP Index.
The MABUX MBP / DBP Index also recorded an undercharge of MGO LS fuel in all selected ports with a minimum value in Houston (minus US$1) and the maximum value recorded in Rotterdam (minus US$34).
