10 April 2013 16:56 [Source: ICIS news]
LONDON (ICIS)--Spot European fuel ethanol values increased this week as a result of supply concerns, according to sources on Wednesday.
Spot European T2 fuel ethanol prices were assessed at €640-650/cbm ($842-855/cbm) FOB (free on board) Rotterdam on Wednesday, compared with €628-635/cbm FOB Rotterdam the previous week.
Prices have firmed following UK-based producer Ensus’ announcement that it would be temporarily closing its 400m litre/year biorefinery at Wilton in the UK, because of adverse market conditions.
Adding to concerns over availability was Swedish producer Lantmannen Agroetanol, which announced it is to reduce production rates by 25% at its 225m litre/year plant in Norrkoping, Sweden, also citing poor market conditions.
“The reduction of the plant’s yearly production of 225 million litres by 25% will be achieved by shutting down one of the production lines at the site as of the beginning of May,” the company said in a statement.
“The reduction will take place from the beginning of May with no fixed date for the start-up. As soon as sustainable profitability improves, full production capacity will be resumed,” the company added.
Spanish producer Abengoa’s 127m gallon/year plant in Rotterdam, the Netherlands, remains shut according to sources. Abengoa was not available for comment.
The plant temporarily shut down for three months in December in order to carry out environmental improvements. However, no official restart date has been announced.
“Supply is getting tighter. There are fewer offers in the market, and what is there is high,” one source said.
($1 = €0.76)
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