T2 ethanol prices soar above 14 month high on continued supply tightness

In the Netherlands, T2 ethanol prices reached Eur628/cu m last week, the highest seen in more than 14 months, on the back of continued lack of supply availability in the Amsterdam-Rotterdam-Antwerp area. There are no immediate signs of relief as many northern European producers continue to operate at below capacity, in part due to high sugar prices. Small volumes of ethanol from Central and South America are due into Europe in the near-term but it won’t be enough to loosen up the supply situation.