RINs prices have soared for much of 2013 on aggressive buying ahead of the impending "blend wall." The term describes when the maximum amount of the US gasoline pool has been blended with 10% ethanol. Refiners will then be under pressure to run higher ethanol blends or buy RINs, unless Congress is pressured to alter the RFS.Now, the news:
The EPA issues a RIN to track renewable fuel usage throughout the supply chain.
Refiners, importers and blenders -- called "obligated parties" -- use them to show the EPA that they have fulfilled their mandated government use of renewable fuels. If the obligated party has not used enough physical product, it can buy RINs to satisfy the quota.
All current-year US RINs assessments strengthened for the sixth straight session Monday, marking the first such streak since Platts began the advanced biofuel (D5) assessment on January 3, 2011.
Platts began assessing corn-based ethanol (D6) RINs in 2009 and biomass-based diesel (D4) in 2010.
Corn-based ethanol (D6) RINs for 2013 were assessed 1 cent higher at $0.8150/RIN, and both current-year advanced biofuel (D5) RINs and biomass-based diesel (D4) RINs a half-cent higher at $0.90/RIN and $0.95/RIN, respectively.
Buying interest heated up last week after a week-long selloff that followed the US Environmental Protection Agency's August 6 announcement of a four-month extension for meeting 2013 Renewable Fuel Standard-2 blending requirements, sources said.