Thailand: Record Molasses Imports

So far this year, Thailand has imported record volumes of molasses.
Its supply is tight, with cane production at a 12-year low.
464k tonnes was imported between January and July, most of which came from Indonesia, Australia, India, and Laos.

However, the demand for domestic ethanol, which is the main use for molasses in Thailand, in the first 6 months of the year was 4.3% less than the same period last year.
This was due to the lockdown leading to less demand for fuel, for which for gasoline cars there is usually a 10% or 20% ethanol blend.
Given the recovery expected in the Thai cane crop for 21/22 season to 93.7mmt, we expect less molasses imports as supply and demand becomes more balanced.
In addition, higher freight costs may also mean imports become un-competitive versus the price ethanol factories can pay for molasses.

One big factor that might change this dynamic though, will be the implementation of the much-awaited E20 policy in Thailand, which we will soon be publishing an article on!

Nateetorn Petchphankul

Nate joined CZ (Thailand) in 2020. He graduated from Kasetsart University with a Bachelor of Science Degree in Agriculture. Given his education background, one of his tasks is to spend some time out in the field speaking to local farmers and producers to understand the crop situation in Thailand mainly sugarcane and its competitor crops. Nate is currently responsible for crop and sugar analysis of Thailand, provide crop outlook of Thailand on CZ App also support trading team on developing and growing business relationship with domestic clients.