European T2 ethanol prices reach record high on tight ARA supplies

In the Netherlands, Platts reports T2 ethanol prices reached a record high of EUR809/cu m FOB Rotterdam on the back of tight supplies in the ARA region. Spot availability is almost nil, forcing the price up EUR131 in just a week, a shocking turnaround compared to record lows seen in March as a result of the COVID-19 pandemic. Even though demand for hand sanitizer has eased as the peak of the pandemic in Europe appears to have passed for now, margins remain higher for industrial ethanol rather than fuel ethanol so those who have the flexibility to choose which they produce have been favoring the former rather than the latter, leading to tightness in the market.