Hydrous ethanol prices unchanged on limited trades
The prices of hydrous/B-grade ethanol for arrival at northeast Asia in the first quarter of 2012 are assessed as unchanged this week amid a subdued market. Northeast Asian importers have not made new purchases for first-quarter 2012 arrival in view of the firm offers at $870/cbm CFR NE Asia and lower buying ideas at $840/cbm CFR NE Asia, according to a market participant.
However, there was strong interest seen for September/October exports of southeast Asia-origin ethanol, as buyers were actively seeking shipments amid the tight availability of the product, according to a Thai distiller.
A Thai distiller said it concluded deals for two South Korea-bound cargoes of hydrous ethanol in mid-September and mid-October with regional traders. The deals were concluded at $800/cbm FOB Thailand, according to the distiller. On a separate note, the distiller said its distillery will be shut next week for three weeks of planned maintenance and exports will resume after mid-September.
Prices of the Pakistan extra-neutral (ENA) alcohol were quoted unchanged at $788-805/cbm FOB Karachi, but the availability of spot material is tight, a trader said.
Discussions were heard for Pakistan’s new-crop offerings in November/December. Selling indications were heard at around $830/cbm FOB Karachi, but buyers said prices were too high based on the current economics, a regional trader said.
There were no deals and discussions heard for Vietnam-origin hydrous ethanol this week and a distiller said its is likely to offer towards the end of the month. Selling indications were quoted unchanged at $768-780/cbm FOB Godau, Vietnam.
On the shipping front, there were no shipping enquiries this week for hydrous ethanol from Brazil to northeast Asia for loading in the fourth quarter. A shipping fixture was done for 12,500cbm of ethanol from Brazil to northeast Asia for loading in the second half of August on a COA vessel and freights were at $68/cbm, according to a Singapore-based ship owner.
The prices of ethanol in India were quoted at Indian rupees (Rp) 30/litre and demand from the gasoline sector is stable, said a local distributor. Indian ethanol distilleries are shut because of the monsoon season and they are drawing on their inventories to supply local oil companies, the distributor added.
Note: This week’s pricing assessment for hydrous/B-grade ethanol is based on arrival in northeast Asia in the first quarter of 2012.
Fuel ethanol
The prices of spot fuel ethanol are assessed as unchanged as limited discussions were heard this week to place fuel ethanol into the key importing market, the Philippines. Demand from the Philippines is likely to pick up in September or October, in wake of the E10 mandate that took effect on 6 August. The mandate affects motor gasoline with a research octane number (RON) of 97.
The prices of Vietnam-origin fuel ethanol were quoted unchanged at $770-775/cbm FOB Vietnam by two distillers but trade was subdued this week, according to a regional trader.
The prices of fuel ethanol in Thailand are stable at Thai baht (bt) 24/litre and demand from the gasoline sector is stable, a Thai fuel blender said.
Shipping freights
Santos to Ulsan: $68/cbm (for a 12,000cbm parcel on a COA vessel)
Pakistan to Ulsan: $60-65/cbm (for a 5,000-8,000cbm parcel on spot)
Singapore to Manila: $40-45/cbm (for 1,700-2,400cbm parcel)
Bangkok to Singapore: $22-23/cbm (for 3,000-4,000cbm parcel)
Shipping enquiries
1,900cbm ethanol, Karachi / Nantong, next available
2,500-3,000cbm ethanol, Karachi / Manila, next available
3,000-4,000cbm ethanol, Da Nang, Vietnam / Manila, early Sept
3,000-4,000cbm ethanol, Da Nang, Vietnam / Ulsan, 1-10 Sept
1,500cbm ethanol, Go Dau, Vietnam / Ulsan or Kunsan, next available
12,000cbm ethanol, Karachi / Turkey, 5-10 Sept
3,000cbm ethanol, Ulsan / Mitajiri, 15-17 Aug
2,500cbm ethanol, Karimun (STS) / Ulsan, next available
1,500cbm ethanol, Go Dau, Vietnam / Pyungtaek, next available
($1 = Bt29.90)
($1 = Rp45.24)
This week on ICIS news (www.icis.com):
9/8/11 19:25 Brazil ethanol spot prices hold steady on thin trade
8/8/11 13:00 Biofuels remains unpopular with drivers
8/8/11 13:00 Dhampur Sugar Mills: Results for 1Q 2011-2012
