The Marine Bunker Exchange (MABUX) World Bunker Index has resumed correctional upward trend on week 49, with index 380 HSFO increasing to US$476.52/MT, VLSFO rising to US$613.65/MT and MGO growing to US$725.42/MT.
The weekly average Global Scrubber Spread (SS) – the difference in price between 380 HSFO and VLSFO – rose to US$136.61, while the average weekly SS Spread in Rotterdam reached US$138.17.
However, the fastest growing weekly average SS Spread was registered in Singapore at US$188.17. “The gradual recovery of the global bunker market has returned the trend of widening price spread between major bunker fuels,” commented MABUX representatives.
Expectations of milder weather in many parts of Europe this week, as well as stable pipeline gas supply from Russia and more Liquefied natural gas (LNG) cargoes set to arrive in the region, have dragged down the key natural gas prices in recent days.
As a result, the price of LNG as a marine fuel at the Portuguese port of Sines on 6 December decreased and reached US$2,155/MT. The LNG price exceeds the price of MGO LS in the port by US$1,481, which still leaves LNG unattractive for the shipowners planning to switch to alternative bunker fuels, according to MABUX analysts.
On week 49, there were significant changes in the correlation between the MABUX Market Bunker Prices (MBP) Index and the MABUX Digital Bunker Price benchmark (DBP) Index. As a result, all fuel grades showed fairly high overcharge margins in almost all four world largest hubs.
In particular, 380 HSFO fuel was overvalued in three out of four ports: in Rotterdam, plus US$1, in Fujairah plus US$10 and in Houston plus US$49. The only port where the MABUX MBP/DBP Index continues to register underpricing is Singapore, with a minus of US$5.
Furthermore, VLSFO fuel grade, according to the MABUX MBP/DBP Index, was significantly overpriced in all selected ports: plus US$33 in Rotterdam, plus US$83 in Singapore, plus US$67 in Fujairah and plus US$30 in Houston.
While in Fujairah and Houston, the overpricing ratio increased by 12 and plus 9 points, respectively, in Rotterdam, the Index surged by 24 points and in Singapore – by 27 points.
Regarding MGO LS, the MABUX MBP/DBP Index recorded an overcharge of this fuel grade in two out of four ports selected: in Fujairah plus US$52 and in Houston, plus US$20.
In all other ports, MGO LS grade was underestimated with Rotterdam recording a minus of US$42 and Singapore, a minus of US$14. The most significant change was the increase in the overcharge ratio in Fujairah by 21 points.
In the meantime, marine fuel volumes at the Port of Rotterdam in Q3 2021 increased by 9.8% year-on-year to reach 2.44 million metric tonnes (mt), with sales of HSFO showing a strong 15.8% year-on-year rise.
In total, sales of conventional bunker fuel (HSFO/MGO/MDO) grew by 4.1% quarter-on-quarter, while sales for the first nine months of 2021 totalled 5.75 million mt, a 4.1% upswing on the same period last year.
LNG volumes continue to show strong and consistent growth, with sales of 213,250 cubic metres (cbm) in Q3, a 35.8% quarterly rise and a 338.5% year-on-year increase, according to MABUX report.
Additionally, sales of LNG for the third quarter alone also exceeded sales for the whole of 2020 by some 2,919 cbm, while there were no recorded sales of methanol during the same period. In the second quarter, a single 250 mt stem of this bunker fuel was registered.
