RIN Prices Sharply Higher D6 RINS produced in 2012 reportedly trading at 30.0cts, up 10.5cts on the session and more than double Friday's (1/25)
RIN Prices Sharply Higher on Concerns About Blend Wall
By George Orwel
DTN Energy Reporter
Spot ethanol trading this morning was marked by a strong market for tradable ethanol compliance credits, with D6 RINS produced in 2012 reportedly trading at 30.0cts, up 10.5cts on the session and more than double Friday's (1/25) assessment; 2013 RINs was bid earlier at 26cts, up 5.0cts. The recent run-up reflects worries there won't be enough ethanol supply to meet individual company requirements under the Renewable Fuels Standard due to the approaching blend wall, trade sources said.
RINs are used to show compliance with this mandate, with RINs created with the renewable fuel. An obligated party can carry over 20% of a previous year's RINs once meeting their annual target.
Now, if I were getting all those RIN dollars, I would be buying the rest of my plants back and paying down my revolving line of credit, while keeping enough cash to get through payroll etc for the rest of the year.........
This scenario does set PEIX up for a come back of up to 2 or 3 dollars. Finally. It would have happened last year if droughts etc....But now it is going to happen, and as some other posters have said....."got ethanol?"