Philippines domestic bioethanol reference price hits 2016 low at Peso 58.45/l in Oct

Philippines domestic bioethanol reference price hits 2016 low at Peso
58.45/l in Oct

The Philippines bioethanol reference price for October was at Peso
58.45/liter ($1.20/liter) -- the lowest level seen in 2016 -- down Peso
1.16/liter from September, according to data released by the country's Sugar
Regulatory Administration Monday.

The reference price takes into account the average cost of molasses and
sugar cane, two feedstocks for ethanol production in the country.

The drop was mainly caused by sharply lower sugar cane price in October,
which was at a one-year low of Peso 1,607.23/Lkg.

The equivalent feedstock cost was Peso 29.73/l, the lowest level since
September 2015 when it was at Peso 30.76/l.

The molasses price in Negros edged down by Peso 52.43/mt from September to
Peso 9,985.07/mt in October, equating to a molasses feedstock cost of Peso
42.59/l.

In comparison, the imported Philippines ethanol price was on an uptrend in
October.

The CIF Philippines fuel-grade ethanol marker jumped $33/cu m month on month
to be assessed at a four-month high of $523.33/cu m on October 31, S&P
Global Platts data showed.

That implies domestic ethanol price was around 230% higher than the imported
fuel-grade ethanol price.

As the Philippines' local monthly allocation of domestically produced
ethanol for first-quarter 2017 was announced on October 19, most oil
companies in the country are expected to procure cargoes by the end of the
year, sources said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.platts.com/latest-news/agriculture/singapore/philippines-domestic
-bioethanol-reference-price-27705581

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com