T2 ethanol in Europe hits record-high premium to gasoline.

摘要

On Aug. 6, T2 ethanol prices reached to €809 ($952.50)/m3, which was the highest level recorded since assessments began in 2007. Earlier, the premium of T2 ethanol to gasoline reached $559.49/m3, which was the largest spread ever recorded. Five months earlier, T2 prices fell to a record low of €350.25 ($416.04)/m3 in March due to the coronavirus pandemic. However, analysts report that demand has not returned to pre-pandemic levels and that the rally in prices is a result of domestic run cuts and slowing imports. In addition, if ethanol remains at a consistendy wide premium to gasoline, ethanol demand may take a hit. Also, delayed imports and increased blending mandates for the year has put the ethanol market into a steep backwardation. At the same time, some market watchers have expressed concerns that prices will collapse soon as a second wave of the coronavirus still remains a threat.