05 September 2013 10:22 [Source: ICIS news]
LONDON (ICIS)--European T2 fuel ethanol values experienced decreases as a result of improved supply, according to sources late on Wednesday.
T2 values were assessed at €575-585/cbm ($757-770/cbm) FOB (free on board) Rotterdam, down €28/cbm from the previous week.
“Production margins made over the last month were very good so there may be a pool of ethanol around as a result of higher production,” one source said.
Another source said: “Margins are fantastic – the producers are making around €50/cbm.”
“There are a lot of volumes around,” one trader said.
Some sources also attributed decreases to lower demand following the peak demand summer driving season and softer feedstock prices.
The European fuel ethanol market has been volatile in recent weeks, dropping by €45-49/cbm to levels of €556-570/cbm FOB Rotterdam two weeks ago, before rising to €603-613/cbm FOB Rotterdam last week, only for prices to decrease again this week.
(€1 = $0.76)
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