Haxo Bioenergy

Renewable, Sustainable, Low Carbon Biofuels and Clean Energy Company

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Ethanol - ETBE (Week Report)

ETHANOL – T2 prices have seen some deterioration, moving towards €530, while the T1 sector saw a sharp drop in prices this week – down from circa US$690 one week ago to US$635-660 FOB Rdam. The main culprit is an increase in offers/availability, and some players also suggest that significant amount of imports from the US could be unsold. EU producers however report that they are well-balanced and are seeing good demand. Generally lower grain prices should be keeping EU production economics in fairly good shape, even with T2 prices in the low €500s. Overall activity has been slow this week due to traders’ attendance at IP events in London and the Brazilian holiday period. The spread between T2 and T1 for denatured markets (plus €102 duties) remains pretty similar to last week, despite the drop in spot prices.