MABUX: Global bunker indices set for sustained downward movement on Oct.29.
MABUX World Bunker Index (as index calculated based on current prices for 380 HSFO, VLSFO and MGO), trended downward on Oct. 28:
380 HSFO - USD/MT - 534.43 (-4.55)
VLSFO - USD/MT – 605.18 (-8.57)
MGO - USD/MT – 758.07-7.10)
As of Oct.28, the MABUX MBP/DBP Index (MDI), monitoring the correlation between market bunker prices (MBP) and the MABUX digital bunker price benchmark (DBP), indicated the following trends across key ports – Rotterdam, Singapore, Fujairah, and Houston:
- HSFO segment: Two ports: Singapore and Houston, returned to the underprice zone, joining Fujairah. Underprice premiums rose by $20 in Singapore, $20 in Fujairah, and $23 in Houston. Rotterdam remained the only overpriced port, though the margin dropped by $19.
- VLSFO segment: Fujairah shifted to the undercharge zone, joining Rotterdam and Houston, with the overpricing margin widening by $31 in Rotterdam, $28 in Fujairah, and $27 in Houston. Singapore remained overcharged, with the gap narrowing by $34 and nearing a full correlation between the market price and the MABUX digital benchmark.
- MGO LS segment: All four selected ports continued to be undercharged. The underpricing ratio widened by $8 in Rotterdam, $17 in Singapore, $22 in Fujairah, and $36 in Houston. The MDI index in both Rotterdam and Houston surpassed the $100 mark.
We expect Global bunker market to maintain a firm downward trend on Oct.29: 380 HSFO –minus 5-10 USD/MT, VLSFO – minus 5-12 USD/MT, MGO LS – minus 7-15 USD/MT.