- MABUX global bunker indices showed no clear trend; and fluctuated sideways.
- Scrubber Spread (SS) continued declining, reducing the economic benefits of scrubber setups.
- LNG prices could surge in Asia due to European demand; LNG as bunker fuel in Sines dropped but remains above $1000/MT.
- Market Differential Index (MDI) showed an undervaluation trend persisting across major ports.
- The emissions report from T&E highlights stagnant emission reductions in European container shipping.
According to LinkedIn, The MABUX global bunker indices exhibited mixed movements during Week 49. The 380 HSFO index increased by 4.76 USD, reaching 518.76 USD/MT. In contrast, the VLSFO index dropped by 2.34 USD to 592.42 USD/MT, staying below $600. The MGO index also fell by 7.12 USD to 755.69 USD/MT.
Scrubber Spread Trends
The Global Scrubber Spread (SS), reflecting the price difference between 380 HSFO and VLSFO, dropped by $7.10, settling at $73.66. This is significantly below the breakeven mark of $100, diminishing the economic advantage of scrubber installations. Rotterdam saw the sharpest drop of $16.00, while Singapore recorded an $11.00 decline.
LNG Market Movements
Goldman Sachs predicts LNG prices in Asia may exceed $20/MMBtu this winter, driven by redirected shipments to Europe. At the Port of Sines, LNG bunker fuel prices decreased by 20 USD to 1008 USD/MT. The price gap between LNG and MGO LS narrowed to 270 USD.
Market Differential Index
The MABUX Market Differential Index (MDI) showed continued underpricing across major hubs.
- 380 HSFO: Weekly averages fell in Rotterdam, Singapore, Fujairah, and Houston.
- VLSFO: Undervaluation rose in Singapore and Fujairah but dropped in Houston.
- MGO LS: The undervaluation trend narrowed in Singapore, Fujairah, and Houston.
The global bunker market remains directionless, with irregular fluctuations expected to persist in the coming week.
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Source: LinkedIn
