After the latest technical update on VLSFO HSFO price differential, Viswa Group comes with a new update highlighting how others have postulated this.
HSFO-VLSFO Prices Insight
In the last report, they projected a price differential between HSFO and VLSFO of around USD 135 per MT. This was based on one of the biggest fuel suppliers in Japan announcing their numbers.
Now, ShipandBunker.com which tracks and publishes marine fuel prices says:
- The Differential price between HSFO and VLSFO is between USD 197 and USD 236 per MT.
- For the most recent period Nov 1 to Nov 12 2019, the differential price has been USD 236 per MT
- Interestingly, last year this differential varied from USD 64.97 to USD 83.38 per MT. At that time there was no great demand for VLSFO.
- It is obvious that the differential will keep going up to USD 200, USD 250 and even more. Most scrubber viability calculations have been based on a differential cost of USD 200 per MT.
Good News for Scrubber Takers
One thing appears to be certain. The differential is not likely to drop below USD 135 per MT. This is good news for those who have to make a decision on scrubbers. Another good news for those who are going for scrubbers is that the HSFO prices are going down progressively.
Working Group To Assist With Fuel Questions
To assist with questions related to 2020 fuels Viswa has started and in‐house ‘Working Group’. You can reach us at wgfuels2020@theviswagroup.com
Please do not hesitate to contact if you would like your VLSFO’s tested.
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Source: Viswa Group
