| Product |
Category |
Region |
Price |
Last Updated Month |
| Ethanol |
Chemicals |
Brazil |
644 USD/MT |
October 2025 |
| Ethanol |
Chemicals |
Brazil |
672 USD/MT |
November 2025 |
Asia
The Asian ethanol market during the fourth quarter experienced mixed dynamics, with India facing structural challenges despite policy interventions. Domestic ethanol consumption remained stagnant, with industry capacity significantly exceeding actual demand allocation. The government explored measures to support sugar mills through potential adjustments to minimum selling prices and ethanol procurement rates, both unchanged for several years. However, surplus production continued to weigh on market sentiment as grain-based ethanol faced export competitiveness issues due to elevated feedstock costs. The mismatch between installed capacity and actual off-take created an oversupply situation, with maize-based production encountering particular difficulties. Policy uncertainty regarding future blending targets and procurement levels added to market hesitancy, though the government's consideration of price support mechanisms provided some optimism for producers facing financial pressure from rising cane acquisition costs.
Europe
European ethanol markets demonstrated firm price support throughout the quarter, driven primarily by regulatory changes and supply constraints. The implementation of updated renewable energy directives across key member states, particularly the elimination of double counting for advanced biofuels, increased demand for conventional crop-based ethanol with higher greenhouse gas savings credentials. Supply tightness intensified following trade agreement impacts that redirected traditional export flows and resulted in production facility closures. Import costs increased substantially in major markets due to regulatory amendments requiring specific product specifications for compliance eligibility. Stock levels at major storage hubs remained relatively low during the period, supporting price levels near multi-year peaks. The combination of strengthening mandate requirements and limited import availability created favourable conditions for domestic producers, though questions remained regarding future supply sources to address the emerging gap.
South America
Brazilian ethanol markets reflected complex dynamics between competing production alternatives and feedstock economics. The prices were about 644 USD/MT (Spot FD) in October and around 672 USD/MT in November. The expansion of corn-based biofuel capacity continued to reshape the competitive landscape, with maize-derived output capturing an increasing share of total production. This development pressured traditional sugarcane processors, prompting greater allocation toward sugar manufacturing despite weakening sweetener markets. The price trend during the quarter showed initial softness in early autumn before establishing an upward trajectory through late autumn and early winter. Mills faced difficult optimization decisions as sugar futures declined substantially year-over-year while corn ethanol production costs remained competitive. The outlook for the upcoming harvest season suggested potential for increased ethanol output, though this depended on relative price relationships and profitability considerations that remained in flux.
