Offers in the B-grade ethanol market sat high on Wednesday, with FOB Ulsan B-grade being offered at 581USD/m3 for Nov/Dec arrival. Value in the Ulsan B-grade market is on the rise as sellers pull back in search of higher levels on the back of rising resupply indications, leaving the PRIMA spot Ulsan B-grade index value rising 10USD/m3 at 550USD/m3. Prices in Brazil are also climbing, now sitting at 475USD/m3.
With an extreme scarcity of B-grade product in Asia, buyers are being forced to increase bid ideas, with a trade reported concluded earlier this week 555USD/m3 . Interest has also been shown in buying 2,000m3 – 5,000m3 of PNS (Philippines National Standard) ethanol for late Oct/early Nov arrival. US prices rose on Tuesday, although some market participants believe they will fall on Wednesday on the back of fresh EIA stocks data.
Rumours of higher subsidies being implemented for domestic ethanol producers could see Chinese demand for ethanol imports fall in the New Year. This could see some Pakistani producers struggle to find an export market for product in the New Year, as the Korean and Japanese markets are reported well covered after earlier purchasing Brazilian product for Q1 2016. The Indian market has been actively open for imports, seeing two vessels en route with a combined volume of around 50,000m3, although there does not yet appear to be much buying interest in the New Year.