The margins of fuel ethanol producers in Europe are negative as prices have dropped to EUR 424-430/cbm FOB Rotterdam in the week leading to March 28, the lowest since September 2016, market information provider ICIS reports, citing sources.

The low prices are expected to continue into the second quarter and potentially the third, given the high levels of storage and production. According to a trader cited in the article, the European fuel ethanol market is in a long-term crisis because of an expected cap of below 7% on crop-based biofuels in Europe and laggard E10 uptake.

Estonia and Romania, for instance, are set to increase fuel ethanol usage, but local market participants expect higher real demand in Romania to materialise gradually due to limited local blending and supply capacities.

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