Ethanol price February 2024 and outlook (see chart below)

  • North America:US$0.59/KG, unchanged
  • Europe:US$1.05/KG, -0.9% down
  • Northeast Asia:US$0.91/KG, -2.2% down
  • Southeast Asia:US$0.93/KG, 2.2% up
  • South America:US$0.68/KG, unchanged
The chart below summarizes Ethanol price trend per region, as well as the outlook. It takes a moment to load.

Business Analytiq assumes no responsibility or liability for any errors or omissions in the content of this site. The information contained in this site is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness, fitness for purpose or timeliness.

Ethanol USA price index

This post is a summary of the Ethanol price developments. The price developments of Ethanol are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Ethanol price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for Ethanol prices, on the second tab, is generated from different inputs including:

  • Very recent price developments of immediate cost drivers of Ethanol prices
  • Recent price developments of underlying feedstocks which drive the price of Ethanol
  • Market futures for both cost drives and feedstocks of Ethanol prices
  • Adjustment of current supply/demand imbalances in the Ethanol market
  • Longer term trends in likely demand conditions

Further information on the Ethanol price

 

What is Ethanol

Ethanol is a type of alcohol that is commonly used as a solvent and as a fuel. It is a clear, colorless liquid with a characteristic sweet odor and is the active ingredient in alcoholic beverages. Ethanol is produced by the fermentation of sugars or starches by yeast or by chemical synthesis. It is commonly used in the production of alcoholic beverages, as a solvent in the pharmaceutical industry, and as a fuel additive to reduce emissions in internal combustion engines. When used as a fuel, it is often mixed with gasoline to create a blend known as gasohol. Ethanol is also used in the production of personal care and cleaning products, as well as in the manufacture of plastics, resins, and other industrial products.

 

How is Ethanol produced

There are several ways to produce ethanol, but the most common method is through the fermentation of sugars or starches. This process involves the use of yeast or bacteria to convert the sugars or starches into ethanol and carbon dioxide.

To begin the fermentation process, a sugar or starch source is mixed with water to create a mixture known as mash. Yeast or bacteria are then added to the mash, where they consume the sugars or starches and produce ethanol and carbon dioxide as byproducts. The resulting mixture is known as “wine.”

The ethanol is then separated from the other byproducts through a process called distillation. This involves heating the mixture to a high temperature, causing the ethanol to evaporate and be collected in a separate container. The remaining liquid, called “stillage,” contains impurities and is usually discarded.

Ethanol can also be produced through chemical synthesis, but this method is less common and is typically used to produce industrial-grade ethanol.

Regardless of the production method, ethanol must be purified and denatured (made unfit for consumption) before it can be used as a fuel or solvent.

 

What is Ethanol used for

Ethanol is used in a variety of applications, including as a solvent, a fuel additive, and an ingredient in personal care and cleaning products.

One of the most common uses of ethanol is as a solvent, particularly in the pharmaceutical industry. Ethanol is a good solvent for many active pharmaceutical ingredients (APIs) and is commonly used to dissolve and stabilize APIs in medications. It is also used as a solvent in the production of perfumes, flavors, and fragrances.

Ethanol is also used as a fuel additive to reduce emissions in internal combustion engines. When mixed with gasoline, it forms a blend known as gasohol, which is commonly used as a fuel in vehicles. Ethanol can also be used as a standalone fuel in flex-fuel vehicles, which are designed to run on a variety of fuel blends.

In addition to its use as a solvent and fuel additive, ethanol is also used in the production of personal care and cleaning products. It is a common ingredient in hand sanitizers, disinfectants, and other cleaning products, and it is also used as an active ingredient in some types of mouthwash and other oral hygiene products.

Ethanol is also used in the production of plastics, resins, and other industrial products. It is a good solvent for many chemicals and is often used in the production of paints, coatings, and adhesives.

 

Which countries produce the most ethanol

The top ethanol-producing countries in the world vary from year to year, but the United States, Brazil, and China are consistently among the top producers.

As of 2021, the United States was the largest producer of ethanol in the world, with an annual production of around 15 billion gallons. Most of the ethanol produced in the United States is used as a fuel additive, although a small portion is also used as a solvent in the pharmaceutical industry.

Brazil is the second-largest producer of ethanol, with an annual production of around 7.5 billion gallons. Brazil’s ethanol industry is primarily based on sugarcane, and the country is known for its advanced biofuels technology.

China is the third-largest producer of ethanol, with an annual production of around 3 billion gallons. China’s ethanol industry is based primarily on corn and wheat, and the country is a major exporter of ethanol to other countries around the world.

Other significant ethanol-producing countries include India, the European Union, and Indonesia.

 

What types of ethanol are there

There are several types of ethanol, including:

Industrial-grade ethanol

This type of ethanol is produced through chemical synthesis and is typically used as a solvent in the production of industrial products, such as paints, coatings, and adhesives. It is not intended for consumption.

Fuel-grade ethanol

This type of ethanol is produced through the fermentation of sugars or starches and is used as a fuel additive to reduce emissions in internal combustion engines. It is typically blended with gasoline to create a fuel called gasohol.

Denatured ethanol

This type of ethanol is produced through the fermentation of sugars or starches and is intended for use as a solvent, but it has been made unfit for consumption by the addition of denaturants, such as methanol or pyridine. Denatured ethanol is commonly used as a solvent in the pharmaceutical industry and in the production of personal care and cleaning products.

Beverage-grade ethanol

This type of ethanol is produced through the fermentation of sugars or starches and is intended for use in the production of alcoholic beverages. It is typically purified and may be flavored or aged to create different types of alcoholic beverages.

Agricultural-grade ethanol

This type of ethanol is produced through the fermentation of agricultural products, such as corn, wheat, or sugarcane, and is used as a fuel additive or as a solvent in the production of industrial products. It is similar to fuel-grade ethanol, but it may contain impurities that are not present in fuel-grade ethanol.

 

How big is the ethanol market

The size of the global ethanol market varies from year to year, but it is generally considered to be a significant market. The demand for ethanol is driven by its use as a fuel additive, a solvent, and an ingredient in personal care and cleaning products.

According to data from Statista, the global market for ethanol was valued at around $124 billion in 2020 and is expected to reach a value of around $170 billion by 2024. The market is expected to continue growing in the coming years due to increasing demand for biofuels and the growth of the bio-based chemicals industry.

The United States is the largest market for ethanol, with a demand of around 13 billion gallons per year. Other significant markets include Brazil, China, and the European Union.

According to https://oec.world/ :

Ethyl alcohol and other spirits, denatured are the world’s 1052nd most traded product.

In 2020, the top exporters of Ethyl alcohol and other spirits, denatured were United States ($1.43B), Netherlands ($140M), France ($109M), Canada ($89.7M), and China ($81.9M).

In 2020, the top importers of Ethyl alcohol and other spirits, denatured were Canada ($510M), India ($305M), South Korea ($166M), Netherlands ($151M), and Germany ($132M).

 

Further information

Business Analytiq

BE THE FIRST TO SEE RISK AND OPPORTUNITY!

BusinessAnalytiq provides unlimited market trend data and an online tools to track market developments, key benchmarks & leading indicators.

BusinessAnalytiq leads to price visibility, better negotiations, easier budgeting and forecasting, lower raw material prices, and improved better internal and external communication. BusinessAnalytiq will decrease risk and higher profit.

businessanalytiq

Where does the data come from?

  • The source of the data are exclusively public non-confidential sources. We have no access to primary data
  • This the index trend of the price trend of the "product category" in general, and not a single specification of the product in particular
  • The data is a combination of contract and spot pricing
  • Our algorithms are set up to eliminate significant product mix impact on the reported price
  • We combine public publications, import/export records, trading prices, company announcements, magazine articles, tweets, and other sources of ad-hoc public information.
  • The chart shows the our best approximation of the market trend based on our algorithm interpretation of the signals
  • For most indexes we have multiple sources and we focus on using statistically-correlated sources
  • As a function of our automation, it is likely that recent trends will be adjusted as we discover more information. So, for example, the price trend for February 2024 will be first calculated in February 2024 and adjusted in March, April and May 2024.
  • We will update the data trend as more information becomes available, and this means that recent trends will always be adjusted as we get more data available
  • The algorithm will regularly revise our understanding of market trends, and indicated market trends may change
  • The data is presented in US$. The UOM of measure is shown in the Index list table
  • Our automated software and we do our best to create an accurate representation of the trend

 

Where does the data NOT come from?

  • We do not purchase data from any other source and republish it.
  • We will not purchase data from any other source and republish it
  • We do not extrapolate trends, even for the forecast. We look for other market signals and leading indicators

 

What data should our company use?

  • If you are making decisions driving significant share of profit, we always recommend that you buy data from the companies who invest in direct primary market access such as ICIS, amongst many others
  • Our data, at best, represents an estimate of the market trend based on public information
  • We have no direct access to the market, and we do not interview suppliers and customers
  • Our automated analysis tools in the online software are set up to combine our data with other sources of data
  • We do not recommend that you use our data for direct price mechanisms, as we may change and improve the data trends over time, including historical data

 

What does the quality indication in the main menu mean?

  • Quality level A: Data is from a reliable and confirmed source
  • Quality level B: Data is from multiple credible sources and there are no major statistical inconsistencies between them
  • Quality level C: Data is from multiple credible sources and there are some statistical inconsistencies between them
  • Quality level D: Data is from a single credible source, but we cannot verify the data
  • Quality level E: Data is either:
    • From a single source, which we consider reliable, but we cannot verify the data.
    • From 2 or more sources which have some periods of contradicting trends.
  • Quality level F: Data is from a single source which we consider indicatively correct, but the data is anecdotal and we cannot verify the data.

 

What are the disclaimers?

  • We assume no responsibility or liability for any errors or omissions in the content of this site.
  • The information is provided on an “as is” basis with no guarantee of completeness, accuracy, usefulness, fitness for purpose or timeliness.
  • By their nature, outlooks are always uncertain

 

How often do we update the data?

  • We aim to update the data series on the 9th and 24th of each month (but we do not always make it for each chart)
  • The data for the current month and recent history are fine-tuned over time.

 

What are we doing to improve the data?

  • We are continually improving our data collection and processing methods
  • Pricing data will be updated from time to time as we improve the accuracy
  • We are reviewing all data sources in the first half of 2024.
    • There will be continuous fine-tuning of the trend and forecast algorithm as part of that.
    • The key focus in 2024 is to add many additional indexes

 

How can i give feedback on the data or request for new indexes

  • Feel free to contact us if you have a specific request. You can reach us via the Contact us page