The Philippines' domestic bioethanol reference price fell for the eighth consecutive month in April to Peso 48.69/liter ($0.97/liter) -- the lowest level since February 2014 -- down 5.66% month on month, according to data released by the country's Sugar Regulatory Administration Tuesday.
The extended fall was mainly led by lower feedstock costs for both molasses and sugarcane.
According to the report, Negros molasses price fell by Peso 1,186.84/mt month on month to Peso 6,718.93/mt in April, the lowest since November 2014 when it was at Peso 6,524.90/mt. The equivalent feedstock cost was Peso 29.26/liter.
Meanwhile, the equivalent sugarcane feedstock cost was Peso 23.55/liter, down 4% from March, equivalent to a sugarcane price of Peso 1,648.35/mt, which was also 4% lower month on month.
In comparison, the monthly average of CIF Philippines fuel-grade ethanol marker jumped $23.70/cu m month on month to $515.70/cu m in April, S&P Global Platts data showed. Maintenance season in the US and strong import demand from Brazil had lent support to Asia's fuel ethanol prices.
As such, the Philippines' domestic bioethanol price was almost 1.9 times of imported ethanol prices, compared with nearly 2.1 times in March.
On the import front, demand was rather sluggish in April. Only one buy tender had closed on April 26 seeking a total 8,000 cu m of fuel-grade ethanol for August and September delivery, or 4,000 cu m each month.
