NE Asia hydrous ethanol prices slip to fresh 11-month lows

SINGAPORE (ICIS)–Prices of hydrous ethanol in northeast (NE) Asia’s import market declined in the week ended 31 May to a fresh 11-month low, reflecting deals and ongoing discussions, market sources said on Wednesday.

The workable price range for hydrous ethanol was deemed to be the lowest since end-June 2016 at around $540-560/cbm (cubic metres) CFR (cost & freight) NE Asia, compared with $550-570/cbm CFR NE Asia in the week ended 24 May.

There were deals heard transacted for cargoes bound for NE Asia at around $540/cbm CFR NE Asia, and that formed the low end of the range. Offers were also heard at or above $560/cbm CFR NE Asia, which made up the high end of the range.

In Brazil, the key supplier of hydrous ethanol to NE Asia, domestic hydrous ethanol spot prices were lower in the week ended 30 May as rainy weather slowed the harvest/crush of sugarcane over the course of the week amid subdued demand.

The ongoing political crisis in Brazil over graft allegations against President Michel Temer was also still a source of uncertainty in the market, the market sources said.

Top image: Irrigated sugar cane plantation, near Juazeiro, Bahia, Brazil
Photographer: Florian Kopp / imageBROKER/REX/Shutterstock.