Over Week 19, the global MABUX bunker indices showed a moderate upward correction. The 380 HSFO index increased by 2.78 USD, rising from 476.95 USD/MT in the previous week to 479.73 USD/MT, but it remained below the 500 USD mark. The VLSFO index also went up by 3.73 USD, from 600.45 USD/MT last week to 604.18 USD/MT. The MGO index showed an increase of 11.77 USD, from 794.00 USD/MT in the previous week to 805.77 USD/MT. As of the time of writing, the market did not exhibit a firm trend.
During Week 19, the Global Scrubber Spread (SS) – the difference in price between 380 HSFO and VLSFO – remained largely stable, with a minor increase of $0.95 ($124.45 compared to $123.50 in the previous week). However, the weekly average SS Spread decreased by $1.46. In Rotterdam, the SS Spread saw a rise of $21, surpassing the psychological $100 mark once again, while the weekly average of SS Spread in Rotterdam also rose by $6.00. In Singapore, the 380 HSFO/VLSFO price difference added $5.00 over the week ($120 compared to $115.00 last week), and the average weekly value increased by $11.66. Overall, signs of some upward correction were observed this week, marking the first time in the last 7 weeks. For further details, please refer to the Differentials section of mabux.com.
Europe’s benchmark natural gas prices extended losses this week – a sixth week of declines amid comfortable inventories and tepid gas demand in Europe and Asia. Spot LNG prices for delivery into north Asia in June have also slumped – to the lowest level in two years, as demand for the refilling of inventories in top buyers China, Japan, and South Korea remains weak.
The price of LNG as bunker fuel in the port of Sines (Portugal) decreased again on May 08 to 933 USD/MT (minus 52 USD compared to the previous week). The price difference between LNG and conventional fuel also decreased to 183 USD on May 08: MGO LS in the port of Sines was quoted at 750 USD/MT that day. The market continues to register a gradual reduction in the difference of prices between LNG and conventional fuel. More information is available in the LNG Bunkering section of mabux.com.
In Week 19, the MDI index (the ratio of market bunker prices (MABUX MBP Index) and the MABUX digital bunker benchmark (MABUX DBP Index)) indicated that 380 HSFO fuel continued to be undervalued in all four selected ports. The average weekly underprice levels showed moderate declines in all ports, ranging from minus $4 to minus $11, except for Houston, where the MDI increased by 10 points.
Source: Hellenic Shipping News
