- Global bunker indices continue moderate growth
- LNG demand from Europe pushes prices higher, narrows gap with MGO
- Scrubber spread exceeds breakeven, supporting HSFO + scrubber economics
- OSPAR bans open-loop scrubber discharges by 2027
- Market valuation trends remain mostly unchanged across key ports
Bunker Market Overview – Week 28, 2025
Global bunker prices continued their gradual rise amid signs of stabilization.
- 380 HSFO: Rose by USD 1.65 to USD 468.82/MT
- VLSFO: Increased by USD 5.22 to USD 565.79/MT
- MGO: Saw the highest jump, rising by USD 21.22 to USD 791.89/MT
A slight correction was noted at the time of reporting, but overall sentiment remains stable.
Scrubber Spread Developments
- Global Scrubber Spread (SS): Rose by USD 3.57 to USD 96.97, nearing the USD 100 breakeven point
- Rotterdam: Spread increased by USD 12.00 to USD 78.00
- Singapore: Spread widened by USD 5.00 to USD 107.00
With SS spreads trending upward, the economic case for 380 HSFO + scrubbers is improving. This trend is expected to continue into the following week.
LNG Market Trends
Europe’s effort to refill gas storage before winter has boosted global LNG demand and prices.
- EU Storage (as of July 8): 60.92% full, up 2.02% from the prior week
- EU Target: 90% by November or December
- TTF Benchmark: Gained 0.526 euro/MWh to reach 34.219 euro/MWh
- LNG Bunker Price in Sines: Up USD 2 to USD 815/MT
- Price Gap vs. MGO: Narrowed to USD 10, down from USD 58 the week before
MABUX Market Differential Index (MDI) Highlights
- 380 HSFO: All ports undervalued; MDI increased across Rotterdam, Singapore, Fujairah, and Houston
- VLSFO: Rotterdam remains the only overvalued port; others still undervalued
- MGO LS: Undervalued in all ports, but MDI rose significantly (e.g., +39 points in Fujairah)
Houston’s MDI is nearing the USD 100 mark, and Fujairah’s remains above it.
Regulatory Update: OSPAR Scrubber Discharge Ban
At the June 26 OSPAR meeting in Brussels, EU environment ministers agreed to:
- Ban discharges from open-loop scrubbers in inland waters and ports starting July 2027
- Ban discharges from closed-loop scrubbers starting January 2029
Though proposals to extend the ban to 12 nautical miles were tabled, no agreement was reached. This is the first regional regulation of its kind and could influence global marine policy.
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Source: LinkedIn India
