Thailand’s Ekarat Pattana to cancel tender for anhydrous ethanol

19 June 2012 10:02  [Source: ICIS news]

SINGAPORE (ICIS)--Thai ethanol producer Ekarat Pattana Co (EPC) has decided to cancel its tender for 8,000cbm of anhydrous ethanol for delivery in August-September and redirect the product to the domestic market because of poor margins for exports, a company source said on Tuesday.

The producer offered via tender three 4,000cbm cargoes of anhydrous material during the week of 28 May for delivery in early July, August and September, respectively.

The first cargo was sold to a trader at around $650/cbm (€514/cbm) FOB (free on board) Bangkok and was heard to be destined for the Philippines. The price is equivalent to around $700/cbm CFR (cost & freight) Philippines after including freight charges of at least $50/cbm. 

However, the producer has decided to cancel the tender for the remaining two cargoes totalling 8,000cbm as bids were deemed too low and therefore unworkable, according to the source.  

The prices of anhydrous ethanol on a CFR Philippines basis were assessed at $675-695/cbm during the week ended 13 June, according to data from ICIS.

“We have decided to direct the remaining cargoes to the domestic market as we will earn better margins,” the source said.

The current domestic prices in Thailand are at around Thai baht (Bt) 20.25/litre (64 US cents/litre) or $645-650/cbm EXWH (ex-warehouse).

The producer is expected to begin negotiations for the remaining cargoes with oil companies in Thailand next week.

($1 = €0.79)
($1 = Bt31.46)

By: Andrea Heng
+65 6780 4359

AddThis Social Bookmark Button

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