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Brazilian question marks stunt Ulsan late week trade

The Ulsan B-grade market remained subdued at the week’s end, as a volatile Brazilian market has left bids and offers too wide apart for any business to be done, leaving the PRIMA Ulsan Index B-grade market value sitting flat once again at 510USD/m3.

Fresh UNICA reports indicated that Brazilian anhydrous ethanol production reached 799,480m3 in the second half of September, and hydrous ethanol production 1,190,000m3. In Brazil, both hydrous and anhydrous ethanol exports have soared this year. For September, anhydrous ethanol sales are sitting at 158,504m3 after sitting at only 43,156m3 for September last year, although with fuel ethanol from the US now sitting much cheaper and shipments considerably more reliable, it is possible Brazilian anhydrous exports could fall in Q4 this year.

Cumulative hydrous ethanol exports are sitting at 369,635m3 for the 2015/16 harvesting season (April – present), after sitting at only 283,811m3 this time last year. UNICA reported yesterday that the pace of ethanol production in Brazil has improved dramatically, and that sales of hydrous ethanol domestically remained high in September. Domestic hydrous ethanol sales for September this year sat at 1,586,334m3, up 42% YoY.

 

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