21 November 2013 11:16 [Source: ICIS news]
LONDON (ICIS)--European T2 fuel ethanol values decreased this week, amid lower demand during open market trading, according to sources late on Wednesday.
Prices were assessed at €526-528/cbm ($701-704/cbm) FOB (free on board) Rotterdam, down by €14-17/cbm from the previous week’s ICIS range.
“Demand slows down in December and this is why prices have softened,” one source said.
Recently the market had gained support from the buying activity of a major player, but one source said this activity had slowed.
“[Company name] are no longer buying much,” the source said.
Another reason given for lower market values were cheap E48 (48% ethanol-blended gasoline) blends originating in the US and flowing into the UK via Norway.
However, one source said: “The [E48] volumes are tiny...about 50,000 cbms [cubic metres] max, probably less...EU [fuel ethanol] consumption is 5.4m cbms.”
“What is happening here is actually more like value based on grain prices and demand,” the source added.
($1 = €0.75)
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