26 September 2012 06:14 [Source: ICIS news]
By Andrea Heng
This marks an unusual trend in the hydrous ethanol market, which is usually bullish in the final quarter of the year.
“The current market trend is unlike what was seen in previous years. Compared with the previous year, prices are quite low and there’s little buying activity for the fourth quarter of this year,” a northeast Asian trader said.
Spot prices of hydrous ethanol have been unchanged at $670-690/cubic metres (cbm) (€523-538/cbm) CFR (cost and freight) NE (northeast)
Current prices are down by an average of 15.5% from end-2011 levels $800-810/cbm
This year, however, buyers were able to meet their yearend requirements by purchasing cargoes from traders – which have procured large volumes in the first half of 2012 – thus demand is expected to be weak in October to December.
“A major trader in
But the remaining volume will easily be taken up by buyers who need to meet short-term requirements, the trader said.
“Discussions are now focused on shipments for the first quarter of 2013. Two major buyers have already purchased a total of 41,000cbm for delivery in January,” the trader said.
($1 = €0.78)
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