Category

Countries

US Ethanol Market Gains Strength Back By Japan's New Policy
US Ethanol Market Gains Strength Back By Japan's New Policy

US Ethanol Market Gains Strength Back By Japan's New Policy

  • 18-Apr-2023 2:59 PM
  • Journalist: Harold Finch

Texas- The Ethanol market continued to revive in the US market owing to several factors, such as a tight supply chain and an inclined demand outlook for the product from the domestic and international markets. According to the statements provided by the officials of the US Trade Representative, The domestic market's demand outlook and productivity rate have changed specially after the political and official  as a result of Japan's broadcast of the policy proposed by the Japanese government. The product prices in mid-April hovered at USD 815/MT, FOB Texas.

According to the Sophisticated Methods of Energy Supply Structure Act's new Biofuels policy, US Ethanol exports might increase by more than 80 million gallons per year, generating an additional $150-200 million in exports each year. Based on continuous improvements in carbon emission reduction by the US Ethanol industry, Japanese regulators amended the US corn Ethanol carbon intensity score, allowing US manufacturers to completely access the whole biofuel market—up from 66% access in 2021.

Other facets governing the overall market dynamics of Ethanol were the steady production of raw material (Corn) in the domestic market. Production rate and cost in the country remained at a moderate pace, proportionally impacting the final prices of the product in the US market. The World Agricultural Supply and Demand Estimates (WASDE) report estimated that the US Maize ending stocks for 2022-2023 would be 1.342 billion bushels, remaining unchanged from March. Moreover, the recent case of derailment of a train carrying Ethanol hampered the supply chain, widening the demand-supply gap. Supply shortage continued to occur in the domestic market amidst the moderate demand outlook for the product from the domestic and international markets. As per ChemAnalyst, Ethanol prices in the US market are anticipated to incline at a stagnant pace on account of better demand for Ethanol blended fuel, proportionally impacting the overall market dynamics of the product in the US market.

Related News

Citroniq Chemicals to Build World’s Largest Decarbonized Plastics Facility in Nebraska
  • 06-Nov-2024 6:30 AM
  • Journalist: Kim Chul Son
U.S. Ethanol Market Holds Steady While Norway Leads in Carbon Capture Initiatives
  • 04-Nov-2024 3:45 PM
  • Journalist: Xiang Hong
PURE Bioscience Partners with Madison Chemical to Expand Food Safety Solutions
  • 24-Oct-2024 12:10 PM
  • Journalist: Italo Calvino
Brazil's Ethanol Market Holds Steady Amid Logistical Hurdles and Sustainable Innovations
  • 15-Oct-2024 7:30 PM
  • Journalist: Patricia Jose Perez