CIF Philippines fuel-grade ethanol has hit a four-month low on Tuesday when it was assessed at $415.33/cu m, down $4.67/cu m day on day, following the US ethanol markets down, according S&P Global Platts data.
THe US is the major exporter of fuel ethanol to the Philippines.
The price has been on a downward trend since June, hitting an all-time historical low when it was assessed at $412.33/cu m on August 31 and remained in the range of $413-$438/cu m level since, according to Platts data.
US ethanol markets have been suffering from a deluge of over-production which saw inventories hit 23.03 million barrels for the week ending November, up from of 22.7 million barrels for the week ending October 26, U.S. Energy Information Administration (EIA) data showed.
Profit margins of major US ethanol producers have been suffering due to rising corn prices.
The S&P Global Platts benchmark Chicago Argo ethanol assessment Monday closed at $1.1725/gal, the lowest level in 15 years, based on Platts data.
Latest US data showed ethanol exports in October climbing 95% higher month-on-month to 664.16 million liters, indicating higher demand for US ethanol on the back of lower prices.
A total of 16.766 million liters of denatured ethanol was exported to India, up from a negligible volume in September.
No ethanol cargoes were seen heading for Malaysia from the previous 50.602 million liters of denatured ethanol recorded in September, which was suspected by market participants to be bound for China.
Meanwhile, South Korean ethanol imports fell 14% month-on-month to 40.608 million liters in November, according to the Korea Customs Service data. 19.810 million liters of denatured ethanol were imported from the US, down 23% month on month.
