The Philippines' domestic bioethanol reference price fell to Pesos 47.52/liter (92 cents/liter) in October, down 19% year on year, according to data released Wednesday by the Sugar Regulatory Administration.
The reference price is calculated by adding up transportation costs and the average cost of two major feedstocks for ethanol production, molasses and sugarcane.
According to the report, the Negros molasses price fell Pesos 480.84/mt from September to Pesos 6,280.83/mt in October, resulting in a lower equivalent feedstock cost of Pesos 27.47/l, which is a five-month low.
The equivalent sugarcane feedstock cost in October was Pesos 22.98/l, equating to a sugarcane price of a four-month low at Pesos 1,608.68/mt, down Pesos 37.91/mt month on month.
In comparison, the monthly average CIF Philippines fuel ethanol price was $469.03/cu m in October, S&P Global Platts data showed.
This means that despite the year-on-year fall, the domestic bioethanol price remains close to double the price of imported material.
On the import front, most Philippines oil companies have finished their import procurement for 2017 and are waiting for the SRA to release the Q1 2018 local monthly allocations, or LMAs, before they start buying cargoes for arrival in the new year.
