20 March 2013 17:07 [Source: ICIS news]
LONDON (ICIS)--European T2 fuel ethanol values have decreased by €20/cubic metre ($26/cbm) as a result of low demand and lengthy supply during the first quarter, according to sources on Wednesday.
Prices were assessed at €605-610/cbm FOB (free on board) Rotterdam on Wednesday afternoon, compared with levels of €625-630/cbm FOB Rotterdam in the previous week.
Sources had initially expected values to remain high during the first quarter following the European Commission’s decision to implement an anti-dumping duty (ADD) of €62.90/tonne on imported US fuel ethanol.
Although this duty closed the arbitrage from the US to Europe, many European market participants had already stockpiled US product in anticipation of the ADDs, resulting in healthy market supply.
Buying interest in fuel ethanol is typically lower during the first quarter because there is less demand for gasoline, and this has also contributed to lengthier market conditions.
($1 = €0.78)
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