Overview
Kpler tracks global ethanol flows, distinguishing between fuel-grade ethanol—used primarily for blending with gasoline—and industrial-grade ethanol, utilized in cosmetics, sanitizers, pharmaceuticals, and other applications. Accurate classification of ethanol flows enables market participants to better understand and predict market dynamics.
Major Ethanol Exporters and Grade Determination
United States, Brazil, and Guatemala:
Export both fuel-grade and industrial-grade ethanol.
Classification of ethanol grade from these countries is determined based on destination-specific constraints.
Peru:
Exports both ethanol grades differentiated by loading ports:
Paita: Primarily exports fuel-grade ethanol due to proximity to sugarcane-based ethanol production, preferred for gasoline blending because of its higher purity and efficiency in fermentation.
Salaverry: Primarily exports industrial-grade ethanol produced from molasses, which contains higher impurities and requires additional distillation steps, making it less economically viable for fuel blending.
Pakistan:
Exports industrial-grade ethanol, predominantly produced from molasses, aligning it naturally with industrial uses.
Costa Rica:
Exports limited volumes of fuel-grade ethanol.
Major Ethanol Importers and Usage Patterns
United Kingdom:
Imports fuel-grade ethanol to satisfy domestic gasoline blending mandates.
India:
Exclusively imports industrial-grade ethanol due to prohibitive duties on fuel-grade imports, designed to protect domestic ethanol producers.
South Korea:
Exclusively imports industrial-grade ethanol, driven by significant demand in the cosmetics sector and absence of domestic ethanol blending mandates.
Philippines:
Imports both ethanol grades, but predominantly fuel-grade ethanol to fulfill the domestic E10 mandate.
Mexico:
Exclusively imports industrial-grade ethanol, as there is no existing ethanol blending mandate domestically.
Colombia:
Imports both fuel and industrial-grade ethanol. Additional analysis required to identify dominant grade trends.
Nigeria:
Imports industrial-grade ethanol for industrial and pharmaceutical purposes, with potential future shifts depending on discussions about reintroducing a domestic E10 blending mandate.
Handling of Intra-European Ethanol Flows
Flows within Europe pose a unique challenge, with both fuel-grade and industrial-grade ethanol commonly traded. Kpler currently classifies these internal European flows simply as "Ethanol" until further structural methods are developed to differentiate these effectively.
Conclusion
Kpler's ethanol data methodology is continually refined based on logistics, trade flows, and regulatory considerations, ensuring users gain actionable insights and accurate visibility into global ethanol markets.