US fuel ethanol spot prices decline; Q3 industrial contracts under discussion

HOUSTON (ICIS)–US spot fuel ethanol prices fell this week as fears over a second wave of the coronavirus remain.

Despite growing concerns of a second wave, demand for fuel ethanol has increased as states continue reopening.

Q3 industrial ethanol contracts remain under discussion amid strong demand and tight supply, although supply is not as tight as it was in the second quarter.

Heightened demand for sanitizers and consequently industrial ethanol is expected to be a long-term trend, even if a coronavirus vaccine is made.

Ethanol is used as a gasoline blendstock, in pharmaceuticals, and in food and beverage applications, such as hand sanitizers and vodka.