Northwest European T2 ethanol prices hit a 40-month low of Eur519/cubic meter FOB Rotterdam Wednesday, after increasingly competitive offers failed to attract buying interest in an ailing winter market. The price was last lower on July 20, 2010, when it was Eur513/cu m FOB Rotterdam, Platts data showed

The traditional seasonal pull in demand has been met by an increase in imports and European production. From USA E48 undenaturated ethanol with gasoline is imported and in Europe the new large UK Vivergo plant in Hull is starting up together with an expected restart of the also very large Ensus plant in Teeside, UK.  The American ethanol is baed on corn and the UK on wheat.

Taken into account the large US corn harvest and the margins in production the price may fall even further.

Price figures based on information from Platts.