25 July 2012 17:39 [Source: ICIS news]
LONDON (ICIS)--European fuel ethanol prices have increased on high feedstock prices and tightening supply, sources said on Wednesday.
Although European fuel ethanol is produced from wheat or sugar beet, rising corn values have exerted upward pressure on wheat prices, resulting in higher European fuel ethanol prices.
The increase in feedstock values has diminished production margins and therefore some producers have opted to lower operating rates, tightening market supply.
“Things are tightening due to less production in
In addition, the arbitrage from the
“The European market is short and is not able to be covered by European production, although in theory it should be. More product is needed but there aren’t any imports,” said a source.
According to ICIS data, spot European T2 fuel ethanol prices are at levels of €720-730/cbm ($867-880/cbm) FOB (free on board)
($1 = €0.83)
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