- Global ethanol prices showed a mixed-to-firm trend in Q1’26, with early softness in Asia due to higher supply and later support from rising blending demand and freight uncertainty linked to geopolitical tensions.
- Feedstock pressure remained moderate as corn, sugarcane, and grain availability stayed stable, while energy market volatility influenced production economics.
- Downstream demand remained steady, supported by fuel blending mandates and transportation fuel consumption across major regions.
Asia
Ethanol prices in Asia followed a mixed trend in Q1’26, declining initially due to higher domestic production and weaker transactions, then strengthening toward March as demand improved. Increased output in China and steady grain availability ensured adequate supply early in the quarter, limiting upward movement. Later, improved buying activity and higher freight and energy-linked costs supported recovery. The Iran war and Strait of Hormuz disruption affected Asia indirectly by raising shipping and blending costs rather than restricting ethanol supply directly.
Europe
Ethanol prices in Europe showed a firm trend in Q1’26, supported by fuel blending demand and tighter supply conditions. Rising energy costs linked to geopolitical tensions strengthened ethanol’s competitiveness as a blending component. Import dependency and uncertainty around shipments increased procurement caution, while steady demand from renewable fuel mandates supported consumption. Feedstock from grains and sugar beet remained stable, but higher logistics costs influenced market sentiment.
North America
Ethanol prices in North America remained firm in Q1’26, supported by strong production and steady blending demand. U.S. ethanol production averaged 1.116 million barrels per day in mid-March, reflecting robust output levels and stable supply conditions. Weekly production data also showed fluctuations between 1.093 and 1.116 million barrels per day during March, indicating consistent supply availability. Domestic demand remained supported by blending requirements, while exports and shipping conditions were influenced by higher freight costs following Middle East disruptions.