Global Ethanol Prices Decline Entering Third Week of November, Impact on International Market
- 23-Nov-2023 5:50 PM
- Journalist: Harold Finch
Ethanol prices have demonstrated a declining trend globally in the week ending November 17. Despite strong demand in the biofuel market, new players have controlled the prices with ample production.
Prices of Ethanol in Brazil maintained their stability in the week ending November 17. Primarily, demand for Ethanol has been steady globally. On the other side, it has been reported that the production of corn has been rapidly expanding in one of the top producers, Brazil, triggering a wave of investments in new biofuel-producing facilities. Vibra Energia, the leading fuel distributor in Brazil, is aiming to introduce corn Ethanol in areas where gasoline continues to dominate.
Currently, India accounts for 3 percent of global Ethanol production. Brazil has also started sharing its Ethanol production technology with India, indicating growing demand in the biofuel industry. Ethanol prices in Brazil on November 17 have been closed at USD 725 per metric tonne, FOB Santos.
Ethanol prices in China have maintained their stability in the week ending November 17. Exports of Ethanol from the US to the Asia-Pacific market have been reported to be stable. Concurrently, it is anticipated that consumption will rise in the forthcoming year, spurred by proposed policy augmentations, robust economic expansion, and growing income levels. According to the International Monetary Fund forecast, the Asia-Pacific region will contribute nearly 50 percent of global economic growth in 2023. Thus, Ethanol prices in China on November 17 were closed at USD 940 per metric tonne, Ex-Shanghai.
Recently, ArcelorMittal has achieved a milestone in the industrial production of Ethanol in steelanol plants. This step has marked Europe’s inaugural Carbon Capture And Utilization (CCU) project as a new success. On November 7, 2023, this historic achievement was recorded at ArcelorMittal Belgium’s Gent plant. In the collaboration, key partners have included LanzaTech, E4Tech, etc. ArcelorMittal has posted an earnings of USD 1.10 per share in its third-quarter results. Total sales have registered an increase of 12% to USD 16,615 million.
Looking at the biofuel industry, the US Department of Agriculture (USDA) has slightly raised its forecast of global crop production and consumption in its latest report. The primary driver for the upward revision has been the adjustment of the Russian harvest, which has been raised from 0.5 million tonnes to 4 million tonnes. Noted, on November 17, Ethanol prices in North America were traded at USD 690 per metric tonne, FOB Texas.
An announcement was made by the American Carbon Alliance (ACA) that the LP Ethanol plant of Corn in Goldfield, Lowa, has joined as a member of the ACA. This collaboration is expected to bring transformation to the Ethanol industry.