ICIS’ coverage of the Ethanol market is published weekly in Asia, Europe, Latin America. Price assessments cover anhydrous and hydrous grades in some regions, beverage and industrial grades in others.
Our market intelligence gathered by our locally based experts gives unbiased and independent commentary to support you making key commercial choices. In addition, there is Fuel Ethanol coverage in Europe giving weekly prices, news and analysis.
Updated to Q1 2021
Europe
A lack of bioethanol fuel consumption brought on by extended lockdowns generated ample availability through Q1. Bioethanol producers maintained reduced run rates as a result. Hungary continued to supplement balanced industrial 99% availability in the German and Italian markets. Industrial 99% availability remained steady in France due to subdued demand from industrial-end sectors, despite a lacklustre Q4 sugar beet harvest. Beverage 96% supply remained balanced after the peak winter holidays.
Existing stocks of hand sanitizers and disinfectants across the region largely accounted for stable industrial 99% demand across Europe. Beverage 96% saw a quiet start to the year after the peak winter holidays demand. Supermarket alcohol sales continued to keep beverage 96% demand afloat in Q1. Bioethanol fuel spot activities remained muted as extended lockdowns tarnished gasoline and bioethanol demand across Europe.
Latin America
Latin America supply of ethanol in Q1 continued declining due to reduced production caused by seasonality of sugarcane feedstock availability. Only 5 corn-based ethanol plants maintained normal production levels in Q1. Ethanol inventories remain elevated amid significantly reduced fuel demand and despite greater production of sugar over ethanol last harvest season.
Q1 domestic ethanol demand continued lower than normal amid pandemic-led reduced fuel consumption but increased marginally around 5% monthly. Demand for exports has been significantly higher, in part caused by improved price parity for international markets due to devaluation of the Brazilian real. Hydrous ethanol used in flexible-fuel vehicles competes directly with gasoline. Anhydrous ethanol is blended in gasoline at a mandated 27%.
US
Supply of fuel ethanol mostly rose in Q1 as plants are preparing for the summer driving season and stronger demand. A freeze in Texas in February slowed or stopped some plant production, but most plants have been restarted. Industrial ethanol supply is also rising as demand slows on increased vaccination efforts.
Demand for fuel ethanol is rising as gasoline demand is near 2019 levels and the summer driving season nears. Vaccinations across the US are also resulting in some pent-up travel demand being unleased. Meanwhile, demand for industrial ethanol is falling due to rising vaccinations in the US, although it remains above 2019 levels.
Updated to Q1 2021
Ethanol (Beverage)
Asia
Supply decreased owing to feedstock limitation, as it was the non-harvest season. Meanwhile producers were more keen on producing sugar rather than hydrous b grade ethanol due to better margins.
Demand remained mixed. Buying interest was getting stronger in the beginning as market participants anticipated the covid-19 pandemic would improve soon. However the slower-than-expected economic recovery in Asia revered the upward trend and hindered the buying sentiment subsequently.
Ethanol (Fuel)
Asia
Supply decreased owing to feedstock limitations, which resulted from adverse weather conditions in the US, one of the main exporters. Cautious sentiment and weak margins further discouraged producers from actively increasing their production.
Demand picked up slightly in Asia. Some traders were looking to secure more cargoes in anticipation of a market recovery, given the easing pandemic situation. Some end-users were keen to purchase due to limited stocks in the domestic market.
We offer the following regional Ethanol analysis and news coverage to keep you informed of factors and developments affecting prices in the Ethanol marketplace.
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News & analysis
ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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There are two main types of ethanol – fermentation and synthetic. The major outlets for industrial ethanol are as a solvent and in chemical synthesis.
Ethanol is a colourless, flammable volatile liquid, with characteristic odour and burning taste. It is miscible with water, ether, acetone, benzene and a wide range of organic products. Ethanol vapour mixes well with air, and explosive mixtures are easily formed.
The two major outlets for industrial ethanol are as a solvent and in chemical synthesis.
Ethanol is used as a chemical intermediate for the manufacture of ethyl acetate, ethyl acrylate, acetic acid, glycol ethers and ethylamines as well as other products. It is also used as an additive to food and beverages.
A large outlet for ethanol is as a fuel, oxygenate additive to gasoline and a gasoline extender.
In addition, ethanol can be used in perfume due to its light odour and quick evaporation.
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