Price indications continued to soften on Wednesday in the B-grade Korea ethanol market amid signs of a weaker nearby bid offer range. This was despite gains in Brazilian anhydrous ethanol markets on Tuesday amid signs of recovery in the Real against the US dollar to 0.2617.
The regional industry is preparing to meet in Beijing next week amid fresh indications of sustained strength in Chinese demand. Just released projections from FAS predicting 30% growth in Chinese ethanol import demand next year should offer a stimulating starting point for discussions. Already this year imports have more than trebled to hit just below 60,000m3 compared to the 14,000m3 imported last year.
FAS predicts Chinese import demand at 90,000m3 for next year as the removal of domestic production subsidies makes overseas production look increasingly attractive. Average domestic ethanol prices in June were over 250USD/m3 more expensive then imported ethanol, due to high domestic corn prices and government restrictions on the production of grain based ethanol.