Asia’s anhydrous ethanol trade eases amid comfortable inventories

24 September 2012 10:01  [Source: ICIS news]

SINGAPORE (ICIS)--Asian trade for anhydrous ethanol has slowed after a rally two weeks ago in key importing market, the Philippines, market sources said on Monday.

Buyers are comfortably stocked with cargoes expected to arrive in October and prefer to wait for fresh supply from Thailand in the coming months, according to traders.

“The market for the fuel grade, or anhydrous ethanol, is going to remain subdued for the next two weeks as most customers have met their requirements,” a southeast Asia-based trader said.

Prices were assessed as unchanged from the previous week at $640-660/cbm (€493-497/tonne) CFR (cost & freight) southeast (SE) Asia, according to data from ICIS.

An Australia-origin cargo was heard transacted at $640-645/cbm CFR Philippines and is expected to arrive in the coming weeks. The cargo volume was not immediately known.

“In addition, some of the smaller buyers are either waiting for prices to drop in the face of overall weak demand or prefer to wait for new offers from Thai distillers,” another trader said.

A Thai supplier said he preferred to sell his cargoes to the domestic market, where there would be better margins compared to exporting.

“Buyers in the Philippines are not really interested in buying, so they are bidding low numbers. Meanwhile, I’ll be able to sell my cargo for a better margin because Thai fuel-grade consumption will increase according to the government’s planned mandate,” the supplier said.

($1 = €0.77)

By: Andrea Heng
+65 6780 4359

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