HOUSTON (ICIS)-- US Q3 industrial ethanol contracts settled higher this week as supply tightens once again in many regions of the US due to spikes in the coronavirus.
Spot prices of industrial ethanol were heard to be higher, and customers continue to buy a large amount of product on the spot market versus the contract market.
A recent unexpected surge in demand has come from the fact that cases of coronavirus are rising in California, Texas and Florida. These highly populated states have created surging demand for sanitizers.
Heightened demand for sanitizers, and consequently for industrial ethanol, is expected to be a long-term trend, even if a coronavirus vaccine is made.
Industrial ethanol contract prices continue to be at historic highs as demand from the sanitizer sector remains high amid short supply.
Ethanol is used as a gasoline blendstock, in pharmaceuticals, and in food and beverage applications, such as hand sanitizers and vodka.