Spot prices pushed even higher in the Ulsan CFR ethanol market on Wednesday, leaving PRIMA Ulsan Index B-grade market values sitting around 510USD/m3. Most of the interest in the Ulsan market is focused around January to March arrivals. With the Brazilian harvest season coming to an end in December, many Asian buyers are busy trying to secure product for the New Year. Offers in the B-grade CFR Ulsan market for January remain high, leaving the market is strong contango with value for Q116 arrival sitting high at 530USD/m3.
Asian ethanol stocks are tight at the moment, although most market participants are reported covered for spot requirements. Amid ongoing uncertainty surrounding future gasoline prices in Brazil and a lack of ready availability of regional product in Asia the B-grade market is likely to remain volatile, particularly as Brazilian Santos traders are proving reluctant to show firm bids or offers while they wait for price stability to return.
The US markets pushed up further on Tuesday, although gains were slightly less significant than earlier in the week. The EIA updated its domestic production forecasts on Tuesday, with domestic ethanol output flat at 900,000bbl/d.