The Brazilian market remained quiet on Tuesday, with heavy rains putting a halt to sugarcane crushing, and seeing prices sit at their highest levels in months. Brazilian ethanol prices sat flat on Tuesday, with B-Grade FOB Santos sitting at 485USD/m3 and anhydrous FOB Santos at 500USD/m3. This has seen PRIMA’s spot Ulsan B-grade index remain flat on Wednesday at 545USD/m3.
Offer indications are still sitting around 580USD/m3, with some buyers’ indications pushing higher than last week to 520-525USD/m3. Some South Korean buyers are not happy with the quality of the Brazilian B-grade ethanol being offered, although it appears to have no problem meeting the specs required by Japanese buyers. Roughly 2/3rd of the production which arrives at Ulsan is destined for Japan, with around 1/3rd destined for South Korea. Small amounts of denatured ethanol is also travelling through Ulsan as an entry point to China, with China reporting imports of 8,681m3 of denatured ethanol from South Korea in September.
Brazilian ethanol continues to price well above the US, with US prices falling slightly on Tuesday after continuously rising since the middle of this month.