European industrial ethanol prices rise sharply or face shortages

Source: Sinopec News Network Time: 2020-03-23

As the demand for disinfectants and cleaning products related to the outbreak soared, European industryEthanol'S spot price is rising sharply and the market is facing disruption. Biofuel producers, gin distillers and perfume manufacturers are turning to ethanol production to help meet the surge in demand. The two largest ethanol producers in France have confirmed that they areEthanolProduction capacity shifted to the industrial market. At present, countries such as Italy that rely on importing raw materials from overseas have already obtained supplies, but due to logistics restrictions, these countries may face shortages. Land transport by truck will also be delayed due to border closures or restrictions on commercial transportation. The lack of storage space in countries such as ports and the United Kingdom has also limited inventory. The UK spot price is 900 pounds per ton, which is at the top of the quarterly contract settlement range. At the same time, it is expected that as European countries impose more restrictions on the movement of people, the demand for fuel ethanol may decline significantly. Some ethanol producers plan to switch from fuel to industrial grade ethanol.