Recently, chatter has grown increasingly loud about Indian buying interest for seaborne, imported ethanol. Apart from more business done there, there has also been a flurry of new players hoping to jump onto the bandwagon. This is reminiscent of similar fervor among market participants last year, when China’s ethanol imports jumped manifold almost overnight, resulting in a surge of traders knocking on the Middle Kingdom’s door. And it appears there is good reason to be optimistic about India. According to US Census Bureau data compiled by S&P Global Platts, the United States exported more than 100,000 cu m of ethanol into India within a span of just three months. Nine cargoes totaling 102,597 cu m were reported leaving US ports between February and April, with the largest being a 54,912 cu m parcel of undenatured fuel-grade product shipped in April. Highlighting the significance of such volumes, total ethanol imports into India amounted to less than 62,000 cu m during the 2013/2014 financial year. One reason frequently cited for India’s growing interest in ethanol is a renewed commitment at governmental level towards using biofuels. Indeed, various ministers have made been talking about improving the viability of the ethanol blending mandate. While
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Source: CTRM Center