There are two main types of ethanol – fermentation and synthetic.
The major outlets for industrial ethanol are as a solvent and in chemical synthesis. Some 60% of
However, a much larger and growing outlet for ethanol is as a fuel, oxygenate additive to gasoline and a gasoline extender. Globally, fuel ethanol accounts for 73% of production, with beverage ethanol at 17% and industrial ethanol at 10%.
Corn and sugarcane are common feedstocks for fermentation ethanol, along with grain, and sugar beet, while synthetic ethanol’s primary feedstock is ethylene. Fuel grade or bio-ethanol is produced from fermentation ethanol sources. Synthetic ethanol cannot be used for fuel ethanol purposes.
The major outlet of fuel ethanol in
Another use is direct blending, in which ethanol is directly blended into gasoline. Both uses are set to grow following the 2003 European Union biofuels directive that traditional fuels and diesel should contain a minimum of 5.75% biofuels by 2010.
In the
In
Ethanol was first produced thousands of years ago by fermentation of carbohydrates and in some countries large volumes are still produced by this method. Synthetic ethanol was first produced industrially in the 1930s by indirect catalytic hydration of ethylene.
Ethanol vapour irritates the eyes and respiratory tract. It may cause effects on the central nervous and on the upper respiratory tract, resulting in irritation, headache, fatigue and lack of concentration. Chronic ingestion of ethanol may cause liver cirrhosis. Vapours can travel to a source of ignition and flash back.
ICIS quotes ethanol in Europe,
Frequency:
Ethanol is published weekly on Fridays in Europe and on Wednesdays in Asia and the
Ethanol Fuel (
Weekly Price Assessments:
Fuel ethanol grades 99.3%-99.9%
FOB RDAM T2 (spot) (EUR/CBM with conversion to EUR/MT)
FOB RDAM T1 (spot) (USD/CBM with conversion to USD/MT)
FOB SANTOS (spot) (USD/CBM with conversion to US CTS/GAL)
Ethanol (
Weekly Price Assessments:
Ethanol Domestic Prices 96% Beverage Potable & Synthetic
FD
FD
FD
FD
Ethanol Domestic Prices 99% Industrial Potable & Synthetic
FD
FD
FD
FD
Ethanol (
Fuel Grade- Anhydrous ethanol min 99.9%
FOB
Hydrous ethanol – min. 95%
CFR NE Asia (USD/tonne converted to USD/CBM)
CFR SE Asia (USD/tonne converted to USD/CBM)
Ethanol (
Weekly Price Assessments:
Industrial Ethanol Contract Prices
Fuel Ethanol Spot Price
ANHYDROUS FOB
ANHYDROUS FOB
ANHYDROUS
ANHYDROUS FOB NY HARBOR (USD/GAL)
Ethanol (
Weekly Price Assessments:
Fuel Ethanol Export Prices
ANHYDROUS FOB SANTOS (USD/CBM converted to US CTS/GAL)
HYDROUS FOB SANTOS (USD/CBM converted to US CTS/GAL)
ANHYDROUS FOB SAO PAULO (BRL/CBM converted to US CTS/GAL)
HYDROUS FOB SAO PAULO (BRL/CBM converted to US CTS/GAL)
General Information:
Assessment window: Price assessments are based on information supplied by market participants through the week up to close of business on Wednesdays at 1700 hours in
Specifications: In
In traditional ethanol markets, European domestic assessments include quarterly and monthly contract prices for 96% grade (fermentation/potable) and 99% grade (industrial “denatured” synthetic and fermentation). In the
Timing: In
Terms: Credit terms are typically 20-30 days from invoicing, depending on source, otherwise 30-60 days after bill of lading date.
Standard cargo size: Standard ethanol cargo sizes are 1,000 tonnes. European prices are also quoted per hectolitre (HLT), hundred litres. Standard fuel ethanol cargo sizes are typically 1,000-3,000 cbm (cubic metres) but 500-600 cbm cargos may be included. Typical cargo sizes in
Assessment basis: European fuel ethanol price quotes are published on a free on board (FOB)
European ethanol price quotes are published on a free delivered (FD) basis, incorporating discussions and confirmed deals across the region. European domestic prices are gross prices typically defining key ethanol accounts settled on a quarterly or monthly basis.
In the
US industrial contract prices address 190- and 200-proof for small-to-medium direct domestic buyers purchasing 50,000-375,000 gal/year.
The fuel ethanol and ethanol reports offer market commentary and analysis including details of traced spot transactions, supply/demand issues, export/import information news, spot prices, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on upstream and downstream market developments and general market intelligence including comments on European Union and individual state legislation relating to fuel ethanol and biofuels.
Asian fuel ethanol prices are published on a FOB
In case of hydrous ethanol, assessments are on CFR northeast
Overall, commentary also includes news on legislations regarding fuel blending, sentiment, production and seasonal factors affecting supply and demand of ethanol. When pertinent, regional comment from the
Brazilian prices are FOB for both domestic and export quotes. The reference city for delivery of domestic product is
Prices for domestic ethanol include taxes all applicable taxes. Taxes are not levied on exported product
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