Asian industrial ethanol prices seen higher due to Brazil’s focus on sugar production

In South Korea, Platts reports that it expects industrial ethanol prices to rise in Asia due to higher ethanol prices in Brazil, the region’s traditional supplier. With Brazilian sugarcane mills focused on producing more sugar thanks to high prices for the commodity, ethanol supplies are reduced and therefore prices are higher than they typically would be. Market participants expect ethanol to be $30-$50/cu m higher in mid-2022 for CFR Ulsan at $660-$700/cu m compared to the same period in 2021.