2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain

2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain

BunkerEx has investigated where existing 3.5% HSFO bunker demand will go, how this will be replaced and what this means for prices.

 

The impact on 3.5% HSFO

The future cost of 3.5% HSFO could go as low as $220/mt. The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. $114/mt). In order to compete, 3.5% HSFO will need to be priced at parity with LNG and coal which results in a price of approximately $220/mt.

 

What about scrubber demand?

Even with the uptake in retrofit scrubber demand and the widespread installation on newbuilds, the most optimistic figures […] Read more