PRIMA’s Ulsan B-grade spot price index sat flat at 555USD/m3 on Tuesday, as a Singapore public holiday dented discussions.
With the Pakistani crushing season set to begin in 10 to 15 days, many deals were closed in Budapest last week for Pakistani product. 55,000 tons of ENA, anhydrous and industrial ethanol is reported to be shipped to Europe from Pakistan in Q1 of the New Year, sold at prices of 635USD/t, 705USD/t, and 615USD/t respectively. Continued tightness in Brazilian B-grade markets has also seen some Brazilian producers who have previously committed to sales of B-grade product in Asia now buying Pakistani ethanol to cover these positions.
Brazilian ANP spec hydrous ethanol prices for the new crop season are currently sitting around 410USD/m3, with B-grade prices sitting at 420USD/m3. Many Brazilian producers are currently considering whether it is more profitable to produce ANP hydrous ethanol for the domestic market, or B-grade ethanol for overseas markets, although B-grade would need to be sitting at a 20-30USD/m3 fob premium in order for this to be profitable.
Many Brazilian and US ethanol market participants are also looking towards ethanol exports to Europe, as T2 FOB ARA physical prices have made MoM gains of over 11%.