US ethanol prices set a new record low, industrial demand continues to strengthen

Author: Alex Snodgrass


HOUSTON (ICIS)--US fuel ethanol prices continued to fall sharply this week and set yet another record low.

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Supply of fuel ethanol remains ample while some producers are switching to industrial ethanol production as demand from that sector continues to climb.

The state of the summer driving season remains in question, which is hampering demand. Fuel ethanol's peak demand season is the summer.

Fuel ethanol demand is almost halved, according to sources, as 45% of fuel demand is currently on stay at home orders in the US.

US ethanol producers are starting to reduce production of fuel ethanol and some are shifting their focus to industrial production as the coronavirus continues to pressure fuel markets and increasing the need for sanitiser production.


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