US fuel ethanol prices hit new low on weak demand

Alex Snodgrass

01-Apr-2020

HOUSTON (ICIS)– US fuel ethanol prices continued to fall sharply this week, setting yet another record low amid more announcements of stay-at-home measures.

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Benchmark Chicago Hub prices are now assessed at $0.80-0.81/gal, hitting a new record low.

Some fuel ethanol producers continue to switch to industrial, even producers that, under new Food and Drug Administration waivers, wouldn’t normally be permitted to do so.

Summer driving season is looking more and more unlikely to occur, hampering demand. Fuel ethanol’s peak demand season is the summer.

Fuel ethanol demand is now halved as more US citizens are under stay-at-home orders.

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There have been no imports of ethanol for the past three weeks, setting yet another record.

Refiner ethanol input continues to fall drastically, as there is little demand for gasoline.

Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.

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