Ethanol Prices

Ethanol Prices June 2024

The ethanol prices in the United States for Q2 2024 reached 641 USD/MT in June. The region experienced a consistent price rise, supported by seasonal driving demand and stronger industrial requirements. The growing costs of corn and energy inputs heavily influenced production expenses. This favorable pricing environment highlighted an upward trend across the market, where both supply restrictions and heightened demand played a crucial role in shaping market dynamics.

The price trend for ethanol in South Korea for Q2 2024 reached 825 USD/MT in June. The market faced an upward trend, primarily because of increased gasoline blending needs and dependence on imports to meet domestic needs. The summer driving season bolstered ethanol usage, while global price rise intensified local market pressures.

In Germany, the ethanol prices for Q2 2024 reached 741 USD/MT in June. The market faced notable price hikes, driven by seasonal utilization of fuel blending and increased commercial uses. The market was further impacted by supply chain disruptions and high production costs because of high energy and feedstock prices. This resulted in a solid upward trend across Germany's ethanol market, with price increases emphasizing the region's demand-supply dynamics amid growing energy demands.

During the second quarter of 2024, the ethanol prices in Brazil reached 701 USD/MT in June. The market initially saw prices rise because of strong domestic demand and high sugar prices, leading to a production shift towards ethanol. Moreover, at the end of the quarter, prices eased because of increased supply from high production. The quarter's overall market dynamics reflected the interplay between seasonal demand, production fluctuations, and external market conditions that shaped Brazil's ethanol pricing environment.

Ethanol Prices March 2024

The ethanol prices in the United States for Q1 2024 reached 507 USD/MT in March. The market faced a challenging first quarter, with significant price adjustments due to a decreased demand and an increase in production fueled by plentiful feedstock availability. This resulted in a generally negative pricing environment across the region.

The price trend for ethanol in South Korea for Q1 2024 settled at 649 USD/MT in March. The prices experienced a substantial reduction in Q1 2024, driven by a seasonal dip in demand and a temporary boost from revised blending mandates, which briefly tightened supply and lifted prices.

In Belgium, the ethanol prices for Q1 2024 reached 606 USD/MT in March. Belgium saw a marked reduction in prices during the first quarter of 2024, influenced by increased production and imports across Europe, which contributed to a surplus and decreased prices across the board.

In March 2024, the price of ethanol in Brazil was 684 USD/MT. Brazil's ethanol market demonstrated resilience in the first quarter of 2024, with prices initially dipping but recovering due to factors such as increased gasoline prices and robust economic activities, highlighting its strategic position in the global ethanol landscape.

Ethanol Prices December 2023

The ethanol prices in the USA for Q4 2023 reached 586 USD/MT in December. The market in the USA is majorly affected by the high corn and energy prices, which has led to major changes in the market, with increased production costs. This was partially offset by lower inventory and freight rates, which has further declined the net prices. Both USDA support and intensified demand from the biofuel sector played its role in shaping a bearish market scenario. 

The price trend for ethanol in South Korea for Q4 2023, reached 692 USD/MT in December. In South Korea, ethanol prices have reduced significantly due to the surging sugarcane production and abridged corn prices, which can be attributed to the growing supply from Brazil and the US. The notable growth represents a broader regional market decline as supply continues to outweigh demand, translating into lower prices across the board for ethanol.

The price trend for ethanol in Belgium for Q4 2023, reached 678 USD/MT in December. In Belgium, sugar cane production-record sets ethanol prices down This has also been driven through lower freight rates and high upstream costs. It is found that the absorption of revised market conditions and prolonged advanced biofuel project delays have also been conspiring to slow price progression.

The price trend for ethanol in Brazil for Q4 2023, reached 625 USD/MT in December. In Brazil, the ethanol market suffered from extreme price drop due to abundant sugarcane production. Despite the robust demand for biofuels, a host of new market entrants, and strong output prospects in the corn sector, the market is witnessing a relatively bearish sentiment.

Regional Coverage

The report provides a detailed analysis of the ethanol market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the ethanol price trend.

Global Ethanol Price

The report offers a holistic view of the global ethanol pricing trends in the form of ethanol price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights the current price but also provides insights into ethanol historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into ethanol price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed ethanol demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Ethanol Price

Q2 2024:

In Europe, Q2 2024 showed an increase in ethanol prices because of various crucial factors. This included high usage of fuel blending and strong industrial use. The seasonal rise in gasoline demand with summer onset also influenced prices. Besides this, supply-side issues, such as logistical disruptions and lower imports from the United States and Brazil, strained availability. Production costs increased because of rising raw materials cost for corn and wheat, and high energy costs. These combined forces created a bullish trend in the market, with prices showing a stable upward trajectory.

Q1 2024:

The ethanol market in Europe witnessed a downward price movement in the first quarter of 2024, influenced by an array of factors. An abundance of supply due to robust corn harvests in regions like Brazil and the United States, augmented production output, and rising imports created a surplus, exerting downward pressure on prices. Moreover, evolving market dynamics such as the push towards renewable energy sources and electric vehicles, alongside economic uncertainties, have curtailed ethanol demand. High production costs linked to volatile energy and upstream corn prices, along with transportation and blending challenges, have strained the market.

Q4 2023:

The ethanol in Europe market, in Q4 2023, was marked by umpteen influencing factors. Year-end destocking contributed to lower prices for ethanol and corn, while reduced cargo rates further bolstered this decline. Conversely, burgeoned corn and energy prices surged the production costs. Moreover, Belgium witnessed the most significant price changes, reflecting a downtrend on account of the record sugarcane output aimed at the local market. Global crop consumption and production adjustments, notably due to the Russian harvest, played a role in the market dynamics. Additionally, delays in the production of biofuels led to bankruptcies and reduced investment in these emerging technologies, leading to a decrease in overall market stability. and diminished investment in these emerging technologies, leading to a decrease in overall market stability.

This analysis can be extended to include detailed ethanol price information for a comprehensive list of countries.

North America Ethanol Price

Q2 2024:

During the second quarter of 2024, North America’s ethanol market saw a steady rise in costs, mainly attributed to the increasing expenses of production inputs. High corn expenses, combined with higher energy prices, significantly impacted the production process. The summer period for driving led to a rise in the usage of gasoline, which resulted in an increased requirement for blending ethanol. Additionally, regulatory trends, such as potential adjustments to renewable fuel standard (RFS) blending requirements, supported ethanol usage across the region, creating a solid positive momentum for the quarter’s market dynamics.

Q1 2024:

Q1 2024 posed significant challenges for the ethanol market in North America, primarily due to a pronounced decline in demand both locally and abroad. The decline in the transportation sector coupled with an off-season period in Europe has notably dampened the need for ethanol. Concurrently, the post-harvest abundance of feedstock has led to escalated production and, consequently, burgeoning inventory levels. These developments collectively fostered a landscape where ethanol prices followed a downward trajectory, underscoring a period marked by ample supply and flagging demand.

Q4 2023:

The ethanol market in North America experienced mixed conditions in the Q4 2023. While supply and demand remained balanced, rising energy and corn costs drove up ethanol production expenses. However, this was counteracted by inventory reductions and lower freight rates, which contributed to price declines. Financial support from USDA and growing demand from biofuel sector have pushed prices higher, particularly in the US, where a bearish market trend was observed. A bumper corn harvest slightly eased prices by lowering upstream costs. The ethanol market saw moderate demand, influenced by increased global crop consumption and production, easing Black Sea supply worries, and higher adoption of distiller's dried grains with solubles.

Specific ethanol historical data within the United States and Canada can also be provided.

Middle East and Africa Ethanol Price

The report explores the ethanol pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on ethanol prices for countries can also be provided.

Asia Pacific Ethanol Price

Q2 2024:

The Asia Pacific market saw an upward shift in prices in Q2 2024, influenced by multiple interconnected factors. Rising employment of ethanol blending in gasoline, because of regulatory reforms, coupled with increased industrial usage, drove regional utilization. A rise in global crude oil prices highlighted ethanol’s competitive appeal as an alternative. Further compounding the situation were supply-side disruptions from logistical issues and elevated transportation costs, which added pressure on ethanol prices. The heightened prices of corn and sugarcane as key feedstocks for ethanol production intensified production expenses, aligning with the seasonal demand for gasoline blending, notably impacting the market’s price trends.

Q1 2024:

During Q1 2024, the Asia Pacific region, particularly South Korea, saw a considerable downturn in ethanol prices. This trend was propelled by a confluence of factors like diminished demand, an oversupply scenario, softer energy prices globally, and relaxed blending mandates. The dip in South Korea's ethanol prices primarily stemmed from seasonal reductions in ethanol use due to lower gasoline consumption and blending needs. Nonetheless, a temporary uplift in prices occurred in February, spurred by heightened ethanol blending mandates which strained domestic supplies and nudged prices slightly upwards.

Q4 2023:

In Q4 2023, the ethanol market in the Asia Pacific region saw a downturn due to multiple factors. Ethanol supply to Oil Marketing Companies (OMCs) decreased, resulting in reasonable to excessive regional supply levels. Higher energy and corn prices, coupled with reduced transportation costs, influenced market dynamics. Expectations of a sugarcane production regression and year-end inventory clearances contributed to falling ethanol prices. South Korea noted significant price drops, driven by abundant sugarcane production and reduced corn prices following increased supplies from the US and Brazil. This bearish trend led to noticeable price reductions throughout the region in comparison to the previous quarter and the same quarter last year.

This ethanol price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Ethanol Price

Q2 2024:

In Q2 2024, ethanol prices in Latin America showed a combination of increases and decreases, starting the quarter with an upward trend before stabilizing. Increased sugar costs in the early months led to an emphasis on producing ethanol, causing sugarcane mills to prioritize it and lessen supplies. Weather-related disruptions and high levels of both domestic and export demand also influenced market forces. By the end of the quarter, excess supply from consistent manufacturing capacities causes prices to decrease, leading to a change in market direction. Overall, this period underscored the market's sensitivity to fluctuating supply dynamics, influenced by harvest variations, policy shifts, and external economic conditions.

Q1 2024:

The opening quarter of 2024 in Latin America, with Brazil at the forefront, displayed mixed pricing signals in the ethanol market. Initial declines in January were countered by subsequent increases in February and March, attributed to rising gasoline prices and enhanced economic activities, which buffered the effects of surplus supply and subdued gasoline costs. Supportive governmental policies, like buffer stocks and export regulations, played a pivotal role in stabilizing prices despite fluctuating freight charges. The quarter closed with Brazil showcasing an overall upward pricing trajectory, affirming its critical role in the global ethanol market amid fluctuating sugar and oil prices.

Q4 2023:

The analysis of ethanol prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Ethanol Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Ethanol Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2024 Edition,” offers an in-depth analysis of ethanol pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of ethanol at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of ethanol price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing ethanol price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Ethanol Market Analysis

The global ethanol market size reached US$ 100.1 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 151.4 Billion, at a projected CAGR of 4.70% during 2023-2032.

• The extensive use of ethanol as biofuel, blended with gasoline to cut emissions and improve octane ratings is influencing the growth of the market. According to Renewables 2023 report by International Energy agency (IEA), biofuel demand is set to expand 38 billion liters over 2023-2028, an approx. 30% increment from the last 5 years.
• The market is also driven by innovations in production technologies that make ethanol production more efficient and cost-effective from both traditional (corn, sugarcane) and non-traditional (cellulosic biomass) feedstocks.
• The use of ethanol in alcoholic beverages for the fermentation of sugars is contributing to the growth of the market. Apart from this, the increasing consumption of alcohol among the masses to cope with work stress and anxiety is driving the demand for ethanol for the production of alcoholic beverages. Ethanol and water are the main ingredients in most alcoholic beverages like beer and wine. According to the predictions of the IMARC Group, the global wine market is expected to reach US$ 762.3 Billion by 2032.
• Ethanol is used in laboratories as a solvent for chromatography, extraction, and dilution purposes. In medical settings, it is used for sterilization and disinfection.
• The broad use of ethanol in a variety of sectors, including the fuel and energy, pharmaceutical, food and beverage (F&B), chemical, and agriculture industries, is one of the main reasons propelling the global market's expansion.
• There is a rise in the adoption of eco-friendly renewable fuels like ethanol, owing to the environment regulations imposed by regional governments around the world on curbing greenhouse gas emissions. In the year of 2024, Indian Union Minister for Petroleum and Natural Gas & Housing and Urban Affairs Hardeep Singh Puri introduced an exclusive automotive fuel “ETHANOL 100”. The fuel is available in 183 outlets across five states-Maharashtra, Karnataka, New Delhi, Uttar Pradesh and Tamil Nadu.

Ethanol News

The report covers the latest developments, updates, and trends impacting the global ethanol market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in ethanol production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the ethanol price trend.

Latest developments in the ethanol industry:

• May 2024: Nayara Energy Ltd, backed by Rosneft, has announced a ₹600 crore investment to establish two ethanol production plants in Andhra Pradesh and Madhya Pradesh, each with a capacity of 200 kiloliters per day. This initiative aligns with the Indian government's target to achieve 20% ethanol blending in petrol by 2025. The company plans to create a total of five facilities, aiming for a combined production capacity of 1,000 kiloliters per day.
• May 2024: Verbio, a German renewable energy company, is expanding its South Bend, Indiana ethanol plant into an innovative biorefinery with combined bioethanol-biomethane production. The total investment for this project is US$230 million. Once completed in 2026, the new plant will have an annual production capacity of at least 250,000 tons of bioethanol and 850,000 MWh of biomethane.

Product Description

Ethanol, or ethyl alcohol, is a colorless, volatile liquid that is combustible. It can be found in alcoholic drinks and it is used as a fuel, solvent, and thermometer. It is made by yeasts fermenting sugars or, in an industrial setting, by petrochemical processes such as ethylene hydration. As an antiseptic and disinfectant, it is essential to the pharmaceutical industry.

Ethanol is widely utilized as a biofuel, which offers a renewable alternative to gasoline. It also aids in reducing carbon emissions when blended with gasoline, which contributes to environmental sustainability efforts. The utilization of ethanol in fuel is encouraged globally to decrease reliance on fossil fuels and mitigate the impact of climate change, thereby marking its significance in the energy sector.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of ethanol pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting ethanol price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The ethanol price charts ensure our clients remain at the forefront of the industry.