Thai Ethanol Producers Mull Resuming Exports after 5 Years Amid Ample Supply
by Christina Siantar (S&P Global/Platts) Thailand’s ethanol producers are exploring the possibility of resuming ethanol exports after a five-year hiatus due to ample supply in the domestic market, trade sources said Tuesday.
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However, traders were skeptical of Thailand returning to the export market as current international prices, dominated by US and Brazil origin ethanol, were much lower.
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The most likely potential export market for Thai fuel ethanol would be China, where it is exempted from import duties due to a free trade agreement.
However, the arbitrage opportunity for Thai ethanol to China currently remains shut even with the import duty advantage over US and Brazilian origin, a Southeast Asian trader said. READ MORE
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