In Europe the T2 ethanol FOB Rotterdam price on August 6 reached EUR 809/cu m, the highest seen since the start of assessments in 2007, Platts reported. 

The spot price added EUR 131 since end-July and more than doubled from the record low of EUR 350.25/cu m in March on shortage of supply in Amsterdam-Rotterdam-Antwerp (ARA).  

It seems that after the removal of lockdowns supply has failed to keep pace with the rise of demand, according to the article. Producers that can make both fuel and industrial grade ethanol are beefing up the industrial-grade as it offers higher margins. In addition, the price movement reflects delayed imports in August. 

The market is expected to cool off on import arrivals. The uncertainty about a second wave of coronavirus lockdowns, meanwhile, is pressing down on the forward curve.

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 Image by Rob Dammers licensed under CC BY 2.0 via Flickr.