- Bunker fuel prices saw an upward shift in Week 45, with the 380 HSFO, VLSFO, and MGO indices all rising.
- The MABUX Global Scrubber Spread showed moderate growth, although it remains below the $100 threshold, indicating low profitability for scrubber combinations.
- European gas prices rose amid supply disruptions, and the price gap between LNG and conventional fuels narrowed significantly.
- The MDI index showed varying trends across major global ports, with some segments showing overvaluation and others undervaluation.
- ECSA and T&E have urged EU leaders to prioritize clean fuels and innovative technologies for the shipping sector to meet climate goals.
Over Week 45, global bunker indices experienced an upward movement, with the 380 HSFO index increasing by 5.67 USD, from 529.02 USD/MT to 534.69 USD/MT. The VLSFO index rose by 12.98 USD, surpassing the $600 mark to 609.08 USD/MT from 596.90 USD/MT last week. The MGO index gained 24.81 USD, reaching 774.94 USD/MT from 750.13 USD/MT. Despite these increases, the global bunker indices have shifted to a moderate downward correction, reports Mabux on LinkedIn.
Scrubber Spread and Market Insights
The MABUX Global Scrubber Spread (SS), which measures the price difference between 380 HSFO and VLSFO, showed moderate growth, rising by $7.31, from $67.88 to $75.19. Although the SS spread increased, it remains below the $100 mark, reflecting continued low profitability for the 380 HSFO + scrubber combination. The spread widened by $11.00 in Rotterdam, though it briefly hit a record low of $10.00. In Singapore, the spread increased by $14.00, surpassing the $100.00 mark, with the weekly average also rising. Further widening of the SS spread is anticipated, although it is expected to remain near the $100.00 threshold.
European Gas Prices and Supply Disruptions
Gas prices in Europe saw an unexpected rise due to recent supply disruptions from Norway and the U.S. This rise has led to cautious market behavior, with gas being withdrawn on weekdays and replenished on weekends. As of November 4, European regional storage facilities were 95.33% full. The European gas benchmark TTF closed at 40.492 euros/MWh, a decrease from 42.869 euros/MWh the previous week.
LNG Bunker Fuel Prices and Narrowing Gaps
The price of LNG as a bunker fuel at the Port of Sines, Portugal, dropped significantly by USD 100, reaching USD 848/MT on November 5. The price gap between LNG and conventional fuels has narrowed sharply. As of November 5, MGO LS was USD 105 cheaper than LNG, a significant reduction from the USD 229 difference observed the previous week, with MGO LS priced at USD 743/MT in Sines.
MDI Index Trends Across Global Ports
The MDI index, which tracks the correlation of market bunker prices to the MABUX digital bunker benchmark, displayed diverse trends across major global hubs. The 380 HSFO segment was overvalued in Rotterdam, Singapore, and Houston, while Fujairah remained undervalued. The VLSFO segment saw overvaluation in Singapore and Fujairah, while Rotterdam and Houston remained undervalued. The MGO LS segment showed that all selected ports were undercharged, with Fujairah’s average rising slightly.
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Source: Mabux on LinkedIn
