Philippines' Feb domestic bioethanol price hits 18-month low at Peso 54.70/liter


The Philippines' domestic bioethanol reference price dropped for the sixth consecutive month in February, to Peso 54.70/liter ($1.09/liter), down Peso 1.31/l from January to an 18-month low, according to data from the Philippines' Sugar Regulatory Administration on Tuesday.

The drop was mainly caused by sharply lower feedstock cost -- both molasses and sugarcane.

According to the report, the Negros molasses price fell Peso 386.46/mt in February to Peso 8,809.76/mt. The equivalent feedstock cost was Peso 37.79/liter, the lowest after September 2015.

Meanwhile, the equivalent sugarcane feedstock cost was Peso 27.03/liter, down Peso 1.04/liter from January, equating to a sugarcane price of Peso 1,892.35/mt, which is Peso 72.34/mt lower month on month.

In comparison, the imported Philippine ethanol price strengthened a little in February. The average CIF Philippines fuel-grade ethanol marker in February was $502.77/cu m, S&P Global Platts data showed.

As such, the domestic Philippines bioethanol price was around 216% higher than the imported fuel-grade ethanol price in February, narrowing from 224% in January.

On the import front, three Philippine oil companies bought a total of 15,000 cu m cargoes in February for second quarter delivery.

Prices were heard to be below $500/cu m CIF Philippines for all trades within the month, according to market sources.

The Philippines' local monthly allocations of domestically produced ethanol was announced in early February at 76,900 cu m for the second quarter.


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