For the 20th week, the MABUX World Banker Index continued its modest decline. The 380 HSFO index decreased by USD 2.27 from last week’s USD 546.81 to USD 544.54/MT. The VLSFO index fell by $1.27 ($658.35/MT versus $659.62/MT the previous week). The MGO index fell by $5.92 (from $846.30/MT last week to $840.38/MT). At the time of writing, the global bunker market had seen a modest upward correction.
MABUX Global Scrubber Spread (SS) (price difference between 380 HSFO and VLSFO) showed a slight increase, reaching +$1.00 ($113.81 vs. $112.81 last week) and still around the $100.00 mark (SS breakeven) It is progressing. It fell by $2.31. In Rotterdam, the SS spread continued to fall to -$2.00 ($86.00 from $88.00 last week) and consistently below $100. The port’s weekly average also fell by $5.50. Conversely, in Singapore, the 380 HSFO/VLSFO price spread increased by $8.00 ($105.00 versus $97.00 last week), again crossing the $100 mark, and the weekly average increased by $2.67. Currently, there is no noticeable movement in the SS spread, but the indicators on both ports are approaching the SS breakeven mark. Irregular fluctuations in SS spreads are expected to continue next week. For more information, see the Differences section on mabux.com.
Projections suggest that prematurely phasing out cleaner and more economically advantageous natural gas could result in significant price fluctuations and pose energy security and affordability challenges. This price volatility could be the driving force behind the energy transition, insulating energy infrastructure from unpredictable fuel markets and embracing renewable energy alternatives. However, volatility can hinder progress in the short term. In week 20, the European gas benchmark TTF continued to decline, falling by €0.94/MWh (€29.669/MWh compared to €30.609/MWh last week).
The price of LNG as bunker fuel at the port of Sines (Portugal) rose slightly, reaching $696/MT on May 13, up $9 from the previous week. Conversely, the price difference between LNG and conventional fuels narrowed on May 13th and is now $117 in favor of LNG (up from $128 a week ago). On the same day, MGO LS was listed at Sines Port at 813 USD/MT. For more information, please visit his LNG bunkering section on mabux.com.
In the 20th week, the MDI index (ratio of Market Banker Price (MABUX MBP Index) to MABUX Digital Banker Benchmark (MABUX DBP Index)) observed the following trends in the world’s major hubs: Rotterdam, Singapore, Fujairah, and Houston. Did.
In the 380 HSFO segment, all selected ports remained in the undercharge zone. The weekly average decreased by 5 points in Rotterdam and 3 points in Fujairah, but rose by 1 point in Singapore. Houston’s MDI index remains unchanged.
According to MDI, all ports were undervalued in the VLSFO sector, with weekly average levels rising by 1 point in Rotterdam and 3 points in Houston, while both Singapore and Fujairah saw a decline of 3 points. The Singapore and Fujairah indices remained closely aligned with the 100% correlation mark between market prices and the MABUX digital benchmark.
In the MGO LS segment, Houston was the only overvalued port, with the weekly average down 10 points, and the index itself nearing 100% correlation between market prices and the MABUX digital benchmark. All other ports were undervalued. Weekly average levels fell by a further 4 points in Rotterdam and 7 points in Fujairah, while they rose by 11 points in Singapore.
As of the weekend, the balance of ports’ overvaluation/undervaluation across all market segments remained unchanged, and there was no stable trend in the MDI index movement.
For more information on the correlation between market prices and the MABUX Digital Benchmark, please visit the Digital Banker Prices section of mabux.com.
A recent study conducted by Chalmers University of Technology in Sweden revealed worrying trends within the shipping industry. The study found that many shipping companies are taking advantage of the economic benefits of using cheaper heavy fuel oil instead of choosing cleaner fuel options. This decision has a significant impact on the environment, as ships equipped with scrubbers contribute to pollution levels equivalent to a socio-economic cost of more than 680 million euros between 2014 and 2022. Masu. The study further shows that the majority of shipping companies that have invested in scrubbers have already exceeded that standard. With a fleet of approximately 3,800 vessels, it will accumulate a surplus of 4.7 billion euros by the end of 2022. In particular, more than 95% of commonly used open loop scrubber systems are recovered within her 5 years. In response to growing environmental concerns, Denmark recently took steps to ban the discharge of scrubber water within 12 nautical miles of the coastline. Similar measures have been adopted by several other countries, including Germany, France, Portugal, Turkey and China. Although there is currently no comprehensive ban in place in Sweden, certain ports, such as the Port of Gothenburg, have implemented restrictions on the discharge of scrubber water within their jurisdiction.
We expect the downtrend in the global bunker market to maintain its potential. Next week, the global banker index is likely to continue its moderate decline.
Source: Sergey Ivanov, MABUX Director
