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$0.68/KG, unchanged
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Ethanol USA price index
This post is a summary of the Ethanol price developments. The price developments of Ethanol are expressed in US$ 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:
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.
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.
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.
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.
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.
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