The bioethanol reference price in the Philippines climbed to a one-year high at Peso 60.52/liter ($1.27/liter) in August, up Peso 1.38/liter month on month, data from the Sugar Regulatory Administration showed.
The reference price takes into account the average cost of molasses and sugar cane, two feedstocks in ethanol production in the country.
The molasses price in Negros Island dropped Peso 50/mt in August to Peso 10,100.00/mt after reaching a year high in July, equating to a molasses feedstock cost of Peso 43.06/liter.
This was offset by an increase in sugar cane costs.
The equivalent sugar cane price rose to Peso 2,337.48/mt in August, equating to a sugar cane feedstock cost of Peso 33.39/liter, up Peso 2.96/liter month on month.
By comparison, prices for imported ethanol continued to drop over the period.
The S&P Global Platts CIF Philippines fuel-grade ethanol marker fell $24.33/cu m month on month to $499/cu m on August 31 because of a supply overhang in the US market.
That implies domestic ethanol costs are more than 2-1/2 times higher than the cost of anhydrous product imported into Philippines.
