Ethanol Pricing Report

Ethanol Prices December 2023

The price of ethanol in the United States for Q4 2023 reached 586 USD/MT in December. The US has had the most significant changes in prices, with a bearish market situation. The bumper production of corn has been the primary reason for the slight decrease in prices as the upstream prices have eased in the US market.

The price trend for ethanol in South Korea witnessed significant changes in ethanol prices, reaching USD 692/MT in December 2023. The country also experienced an increase in sugar production which is leading to a stable supply of ethanol. However, the prices of ethanol in the country have registered a declining trend owing to the record production of sugarcane worldwide and the destocking season.

In Belgium, ethanol prices declined, reaching USD 678/MT, influenced by the rise in domestic sugarcane production.

The price of ethanol in Brazil for Q4 2023 reached 625 USD/MT in December. Brazil experienced a decline in prices owing to record production of sugar and high domestic inventory. The anticipated pricing trend for ethanol in Brazil indicates a bearish market with high supply and low demand.

Ethanol Price Trend, Market Analysis, and News

IMARC’s newly published report, titled Ethanol Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data, 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 prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends 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 widespread adoption of ethanol in various industries, such as fuel and energy, pharmaceuticals, cosmetics and personal care, food and beverage, chemical industry, and agriculture industry represents one of the key factors driving the growth of the market across the globe.
• 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 the U.S. Energy Information Administration, in 2022, about 18.7 billion gallons of biofuels were produced in the United States and about 17.6 billion gallons were consumed. The United States was a net exporter (exports minus imports) of about 1.0 billion gallons of biofuels in 2022. Fuel ethanol accounted for the largest share of gross and net exports of biofuels.
• The increasing implementation of stringent environmental regulations by governments in various countries across the globe to reduce greenhouse gas emissions is driving the demand for cleaner, renewable fuels, such as ethanol. For instance, India's Ministry of Petroleum and Natural Gas published its “National Policy on Biofuels" in 2018, and further amended it in June 2022. The policy aims to reduce the import of petroleum products by adopting domestic biofuel production.
• 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. According to an article published in MDPI journal, the catalytic hydrogenation of CO2 promises development direction in the production of ethanol and reduces environmental pollution problems.
• The use of ethanol in alcoholic beverages for the fermentation of sugars is contributing to the growth of the market. According to the Beer Info website, the overall U.S. beer consumption per adult aged 21 and over is around 28.2 gallons per person, per year. Breaking these numbers down further, the average adult over the age of 21 is consuming about 10 ounces per day or roughly one six-pack per week.

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 shape the industry landscape.

Latest developments in the ethanol industry:

• In April 2023, Bunge North America, Inc.’s Decatur plant announced a $28.6 million expansion in May. The project will improve the plant’s unloading and distribution capabilities by upgrading existing buildings and adding new buildings and equipment. Construction should be complete by December of this year.
• In January 2023, United Airlines, Tallgrass, and Green Plains Inc. announced a new joint venture “Blue Blade Energy” to develop and then commercialize a novel Sustainable Aviation Fuel (SAF) technology that uses ethanol as its feedstock. If the technology is successful, Blue Blade is expected to proceed with the construction of a pilot facility in 2024, followed by a full-scale facility that could begin commercial operations by 2028.

Product Description

Ethanol, or ethyl alcohol, refers to a flammable, volatile, and colorless liquid. The chemical formula for this is C2H5OH. Ethanol is the kind of alcohol found in alcoholic beverages and is also employed in thermometers, as a solvent, and as a fuel.

Ethanol is produced through the fermentation of sugars by yeasts or via petrochemical processes like ethylene hydration in the industrial context. It plays a critical role in the pharmaceutical sector as an antiseptic and disinfectant.

Ethanol is a key ingredient in the manufacturing of personal care products, and cleaning agents, as well as a preservative in the food industry owing to its effectiveness in killing microorganisms.

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.

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 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 price trends.

Global Ethanol Price

The report offers a holistic view of the global ethanol pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level.

Europe Ethanol Price

The European region has experienced several challenges in the fourth quarter of 2023. Year-end destocking has led to a drop in prices for corn and ethanol. The decreasing freight rates have supported a drop in ethanol prices. However, the enhanced energy prices and upstream corn prices have led to a rise in production costs. Adjustments in the Russian harvest uplifted global crop projections, but delays in advanced biofuel operations led to bankruptcies and waned investment in biofuel technologies

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

North America Ethanol Price

In the North American region, the ethanol market has witnessed fluctuations in the current quarter of 2023 due to the increasing cost and energy costs, affecting production expenses, while lower freight rates and destocking facilitated reduced prices. The USDA's loans and grants for rural energy development and increased demand from the downstream biofuel industry, are supporting a price hike. The rise in crop production and consumption increased distillers' dried grains with soluble adoption and easing black sea supply concerns are leading to moderate demand.

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

Middle East and Africa Ethanol Price

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

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

Aisa Pacific Ethanol Price

The ethanol pricing in the Asia Pacific region experienced a bearish trend in the fourth quarter of 2023. There is a moderate to high supply of ethanol in the region because of a decline in the supply of ethanol to Oil Marketing Companies (OMCs). The increased energy costs, rising maize prices upstream, and falling freight rates have all had an impact on the ethanol industry. Corn and ethanol prices have dropped in the area due to expectations of a reduction in sugar cane production and year-end destocking. Due to the increasing supply from the US and Brazil, the price of maize has also dropped to a three-year low, which has caused the price of ethanol to decline.

This analysis can be further extended to include detailed ethanol prices for a comprehensive list of countries within the region.

Latin America Ethanol Price

In the Latin American region, the ethanol market has a stable quarter with moderate supply and low demand in the current quarter of 2023. In the biofuel market, there was plenty of supply and new companies controlling pricing despite the rising demand. However, Vibra Energia made the most of its energy shift by supplying cars in the largest economy in Latin America with ethanol. A price reduction will be aided by an increase in grain production and a further reduction in freight costs. Tons of sugarcane were crushed in the quarter, and any interruptions in sugarcane harvesting caused by potential rainy weather could eventually result in a shortfall of supply for the ethanol production sector.

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

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 volatility, 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, ensuring they remain at the forefront of the ethanol industry.