Fuel ethanol producers welcome firmer prices, margins remain weak

09 May 2013 11:59  [Source: ICIS news]

LONDON (ICIS)--European T2 fuel ethanol prices are increasing but remain below replacement costs, according to sources late on Wednesday.

Although producers are encouraged by firmer values, they say that margins remain weak.

“Finally, we have seen an increase after prices have hovered at around €630/cbm [cubic metre] for most of the year,” one producer said.

“Prices still have a lot of room to move,” another producer said.

Producers suggest prices of €670-700/cbm ($882-921/cbm) FOB (free on board) Rotterdam are needed if they are to make a margin.

European T2 fuel ethanol prices firmed to levels of €650-653/cbm FOB Rotterdam this week, up €13-20/cbm from the previous week.

Sources attribute price increases to improved demand as the summer driving season approaches, and to tighter supply caused by plant outages in parts of Europe.

($1 = €0.76)


By: Sarah Trinder
+44 20 8652 3214



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