During the ninth week of the year, Marine Bunker Exchange (MABUX) global indices exhibited irregular fluctuations without a discernible pattern.
The 380 HSFO index experienced a marginal decline of US$0.32, slipping to US$519.50/MT. On the opposite direction, the VLSFO index increased by US$1.42 to US$674.96/MT, while the MGO index saw a decrease of US$4.84, falling to US$904.54/MT.
“Currently, the market is characterized by a moderate downward trend,” stated a MABUX official.
The Global Scrubber Spread (SS), representing the price disparity between 380 HSFO and VLSFO, saw a modest increase of US$1.74 to US$155.46, while the weekly average experienced a marginal decrease of US$0.66.
In Rotterdam, the SS Spread showed a US$2 rise to US$116, despite a US$4.66 decrease in the weekly average. Conversely, in Singapore, the price difference between 380 HSFO and VLSFO narrowed by US$2 to US$194, remaining close to the US$200 mark, with the weekly average also decreasing by US$6.66.
“Overall, changes in SS Spread are minor, and a clear trend is yet to emerge,” noted a MABUX spokesperson.
In the port of Sines (Portugal), the price of LNG as bunker fuel experienced a moderate decline, reaching US$603/MT on 27 February, marking a decrease of US$13 compared to the previous week. Concurrently, the price difference between LNG and conventional fuel narrowed slightly on 27 January with LNG being favoured by US$305 compared to the US$316 difference a week earlier. On that specific day, MGO LS was priced at US$908/MT at the port of Sines.
During Week 09, the MDI index, which compares market bunker prices (MABUX MBP Index) to the MABUX digital bunker benchmark (MABUX DBP Index), exhibited various trends across four selected ports: Rotterdam, Singapore, Fujairah, and Houston.
In the 380 HSFO segment, all four selected ports remained underpriced. Rotterdam saw a 30-point increase in its average weekly undercharging, while Singapore increased by 2 points, and Houston decreased by 6 points. Fujairah’s MDI index remained unchanged and remained above the US$100 mark.
For the VLSFO segment, Rotterdam returned to the underpriced zone, with a 42-point increase in the weekly average according to the MDI. The other three ports were overcharged, with Singapore experiencing a 9-point decrease in the average weekly premium, Fujairah dropping by 1 point, and Houston by 3 points.
In terms of the MGO LS segment, Houston was the only port that remained overpriced, with the average weekly ratio narrowing by 5 points. The other three ports were in the undercharge zone, with Rotterdam showing a 55-point increase and Fujairah experiencing a 23-point decrease. The MDI index for Singapore remained unchanged.
Based on the MDI index, 380 HSFO and MGO LS continue to be priced below their value in the world’s major hubs. Conversely, the VLSFO segment is priced higher than its value in all ports except Rotterdam.
“No drastic changes in the bunker indices are expected for the upcoming week. The market
is likely to be dominated by minor multidirectional fluctuations,” stated Sergey Ivanov, director of MABUX.
