For the First Quarter of 2022
In the first quarter of 2022, ethanol prices in the northern market increased in tandem with feed (corn) prices. In comparison to Q4 of 2021, prices in Q1 of 2022 increased by 20%. Strong demand from downstream pharmaceuticals and cosmetics influenced its price in Asia positively. As a result of the tensions between Russia and Ukraine, feedstock supply was disrupted, causing ethanol makers to raise their production costs. Prices in China at the end of the first quarter of 2022 were 1175 USD/ton, ex-Shanghai. Furthermore, China's adoption of a lockdown has temporarily halted ethanol output. As a result of feedstock supply disruptions, butanol prices also witnessed an increasing trend.
Price of ethanol in the European market in the first quarter of 2022 exhibited erratic momentum during the first quarter. Prices were impacted by changing demand from end users such as disinfectants. The war between Russia and Ukraine disrupted the trade route, resulting in a shortage of feed corn and sugarcane, which had a direct proportionate influence on the price of ethanol. They varied from 1075 USD/MT, CFR Hamburg, Germany, to 1055 USD/MT, CFR Hamburg, Germany, in the quarter ending March 2022. Butanol prices followed
Prices of ethanol in the North American market ranged from 775 USD/MT, FOB Texas to 870 USD/MT, FOB Texas USA at the conclusion of the first quarter of 2022. As tensions between Russia and Ukraine intensified and ethanol makers faced restricted supply from feed (corn) growers, prices fell 19 percent in Q1 of 2022 when compared to Q4 of 2021. Corn prices surged throughout this quarter, and as a result, the cost of producing ethanol soared at the quarter's end, raising butanol prices as well.
For the Fourth Quarter of 2021
The market in Asia Pacific showed mixed sentiments as butanol prices rose continuously in the region in the fourth quarter of 2021. Its demand increased across Asia Pacific for a variety of reasons. However, the Indian government's determination to increase local ethanol production resulted in a bigger global sugar supply imbalance. Furthermore, GAIL and GACL JV recently established a second-generation Bio-Ethanol factory in Gujrat, India. Ex-Mumbai bids for the chemical were resolved at 810 USD/MT for the quarter ending December 2021, as a result of the ripple effect.
Since July 2021, the EU Commission has been working on a package of recommendations known as the "Fit for 55 Package" to line with the European Green Deal and European Climate Change Agreement, which sets tighter standards to attain carbon neutrality by 2050. In Europe, however, the persistent energy crisis, low natural gas supplies, and supply worries kept local market sentiments down. In terms of demand, the German market in 2021 failed to match the advances seen in France and the United Kingdom. As a result, bids in the German market remained buoyant. CFR Hamburg's price during the quarter ending in December 2021 was decided at 1056 USD/MT.
The market in North America remained consolidated throughout the fourth quarter of 2021. The demand expectation for local and international markets surpassed production capacities, as high grain prices pushed companies to lower output capacity. Several facilities, on the other hand, announced turnarounds ahead of schedule to avoid high-cost feedstock. Several market participants believe that the present trend will continue during the next quarter. As a result of the ripple effect, ethanol offers climbed to an all-time high in Q4 2021, while FOB California Ethanol conversations reached at 694 USD/MT in November 2021.
For First, Second and Third Quarters of 2021
Overall demand for the chemical from downstream industries in Asia remained strong in Q1 2021. In China, disinfectants demand remained stable compared to the previous quarter. Furthermore, China purchased a large amount of ethanol from the United States to meet this need. Feedstock corn prices in China were 35-45% higher. Meanwhile, in the Indian market, abundant availability of feedstock sugarcane pushed down ethanol prices for three months in a row, with CFR India prices falling from 883.2 USD/MT in January 2021 to 750 USD/MT in February 2021.
Butanol prices remained constant-to-high throughout the third quarter of 2021. During Q3, there was a disruption in the supply of ethanol, which was influenced by higher freight costs in China. In the month of September, the price of ethanol in India was roughly 726 USD/MT. Due to constant demand from the domestic market and significant stock availability, the price trend in the country remained stable. Market participants stated that the goal of blending 20% ethanol into gasoline is becoming more difficult owing to rising feedstock prices.
During Q1 2021, prices were sustained by limited supply across the area. Despite the fact that Europe relies heavily on ethanol imports from the United States, product availability has been limited. Due to poor feedstock production and strong exports and domestic demand in the United States, supplies remained low. Meanwhile, demand for disinfectants and sanitizers remained consistent throughout the quarter.
In the third quarter of 2021, the European market saw an increase in the chemical’s price due to poor raw material availability, increased purchasing power, decreased industrial production, and higher logistic expenses. During Q3, the downstream industries' demand for ethanol expanded at an exponential rate. Due to worldwide pressure, butanol prices in the European area have continued to rise.
Due to production cuts and increasing demand from local consumers as well as exports, the price of the chemical has risen in North America. Due to a scarcity of feedstock maize, ethanol prices soared in the first quarter of 2021. Furthermore, the winter season interrupted manufacturing activities throughout the Gulf Coast, resulting in unscheduled shutdowns at many production sites in January and February. Furthermore, due to an unexpected increase in export demand from China, US exports surged.
During Q3, ethanol prices in the region skyrocketed due to a lack of feedstock, transportation challenges, restricted production, and a steady rise in crude oil prices, impacting butanol prices as well. During the quarter, there was an increase in demand from key downstream sectors. Exporters stated that China's demand for feedstock corn surged significantly in Q3 2021, affecting feedstock corn prices in the US market. The regional supply was impacted by some plant turnarounds reported as a result of Hurricane Ida's aftermath. During the last week of September, the FOB price of ethanol in the United States was estimated at 849 USD/MT.
Procurement Resource provides latest prices of Butanol. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Butanol for several regions around the globe, which are as follows:
Butanol is a popular fuel for internal combustion engines. Butanol is a C4-hydrocarbon that may be used as a drop-in fuel in cars that were meant to run on gasoline. Butanol comes in four isomers, however the most active commercialization activity is on isobutanol for gasoline mixing. Biobutanol may be mixed readily with gasoline at quantities of up to 11.5 percent by volume.
Biobutanol is often produced in ethanol producing plants. The earliest biobutanol facilities were really converted corn ethanol units.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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