Stronger role for Brokers in Asia biofuels market

14 December 2006 08:36  [Source: ICIS news]

SINGAPORE (ICIS news)--Brokers will take a more active role in Asian biofuels trade in the near future when more plants start up, sources said late on Wednesday.

 

Companies such as OceanConnect, Ginga Petroleum and PVM have started brokering desks focusing on biodiesel and ethanol.

 

“There is definitely interest [as] a lot of material is moving to the US and Europe,” said a broker from OceanConnect, which is already an active player in the US.

 

Most producers were also looking at long-term contracts rather than spot deals, he added.

 

A broker from Ginga said that trade was expected to heat up in the second half of next year when more facilities start up.

 

“Supply is still very thin in this region. [We] haven’t seen active trading yet,” he added.

 

Biodiesel supply in Asia will increase as there are more than 70 projects in Malaysia alone and larger units are being built, he said.

 

Brokers will also have a more active role to play as competitive pricing becomes a factor, he noted.

By: Florence Tan
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly