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Ethanol

  • 5583CNY/TON Updated: 2026-07-24
  • Price change (DoD): 0
    Average price (3M):5689 CNY/TON
    Price Level(1Y):Mid
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Ethanol Prices Trends in China

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Reg Spec 2026/07/22 2026/07/23 2026/07/24 ChangeUnit Comparison
Domestic
  • Domestic 95% Food Grade 5583 5583 5583 0/0 CNY/TON

Ethanol Market share- How big is the Ethanol market?

In 2023–2024, the United States, Brazil, and France were the leading exporters of ethanol (CAS 64-17-5), collectively accounting for over 60% of global export value, while China, India, and Canada ranked as the top importers. The U.S. and Brazil dominate supply due to large-scale biofuel production capacity, whereas Asian and North American import demand reflects blending mandates and industrial use. Global ethanol trade volumes remained relatively stable in 2024 amid moderate fluctuations in ethanol prices, with emerging import growth observed in Southeast Asia and sustained policy-driven demand in major markets.

Ethanol Market Analysis

Ethanol Commodity Market Dynamics Report (Recent Update)

I. Price Trends
1. National Mainstream Market Average Prices
- July 6, 2026: RMB 5,810.76/ton (unchanged)
- July 3, 2026: RMB 5,810.76/ton (week-on-week +0.16%)
- July 1, 2026: RMB 5,799.85/ton (week-on-week +0.05%)
- June 30, 2026: RMB 5,796.97/ton (week-on-week +0.08%)
- June 26, 2026: RMB 5,790.91/ton (week-on-week ?0.02%)

2. Regional Market Prices
- Henan Province (as of July 8, 2025):
Premium-grade ethanol: RMB 5,630–5,650/ton
Anhydrous ethanol: RMB 6,250–6,300/ton
- Hebei Province (as of July 8, 2025):
Corn-based ethanol (standard grade): RMB 5,600–5,750/ton
Anhydrous ethanol (factory pickup): RMB 5,900–6,050/ton
- Shandong Province (as of July 8, 2025):
Cassava-based standard-grade ethanol: RMB 5,650/ton
Cassava-based anhydrous ethanol: RMB 6,250/ton
Wheat-based standard-grade ethanol: RMB 5,550–5,650/ton
Wheat-based premium-grade ethanol: RMB 5,650–5,700/ton

3. Historical Price Comparison
- Business Society benchmark price on July 8, 2025: RMB 5,661.11/ton (up 0.64% from beginning of month; annual median: RMB 5,575/ton; annual high: RMB 6,045/ton; annual low: RMB 5,105/ton).
- Benchmark price on June 1, 2026: RMB 5,688.89/ton; declined to RMB 5,595/ton on June 30, 2026 (cumulative decline of 1.65%).

II. Industry Chain Dynamics
1. Upstream Raw Materials
- Fluctuations in raw material prices—particularly corn and cassava—significantly impact ethanol production costs. As of June 26, 2025, the price of standard-grade ethanol in Heilongjiang Province ranged from RMB 5,350–5,480/ton in eastern regions and RMB 5,400–5,550/ton in western regions, indicating relatively weak raw material cost support.
- The 2026 Food-Grade Ethanol Industry Report identifies raw material price volatility as one of the sector’s primary challenges.

2. Production Sector
- Jiangsu Dongcheng Biotechnology’s 150,000-ton-per-year cassava-based standard-grade ethanol facility is currently offline; the company’s quoted price stands at RMB 5,650/ton (as of July 8, 2025).
- Quotations in Shandong Province remain stable; the price gap between cassava-based standard-grade ethanol and wheat-based premium-grade ethanol has narrowed to RMB 50/ton, reflecting substitution effects among feedstocks.

3. Downstream Demand
- Traditional end-use sectors—including beverages, pharmaceuticals, and cosmetics—exhibit stable demand. However, demand from chemical applications (e.g., ethyl acetate) remains weak. In July 2025, the ethyl acetate market experienced reduced activity due to increased shutdowns among downstream enterprises, resulting in diminished spot demand and downward pressure on ethanol prices.
- Demand for ethanol fuel is being driven by global energy transition initiatives; however, high production, storage, and transportation costs constrain near-term growth.

III. Market Drivers
1. Cost Support
- Raw material prices remain at relatively low levels; yet increasingly stringent environmental regulations (e.g., carbon emission reduction mandates) are raising production costs. Some producers are mitigating this through technological upgrades—including enzyme engineering and membrane separation technologies—to improve efficiency and reduce costs.

2. Supply-Demand Balance
- Supply side: Regional plant outages (e.g., Jiangsu Dongcheng) have not triggered widespread shortages; overall market supply remains ample.
- Demand side: Steady demand from traditional sectors coexists with untapped growth potential in the fuel sector; short-term price movements are characterized by narrow-range consolidation, shaped primarily by supply-demand equilibrium.

3. Policy and Trade Environment
- Domestic environmental policies are tightening ethanol production standards, fostering industry consolidation and higher concentration.
- International trade frictions may affect import costs for raw materials (e.g., cassava), although current impacts remain limited.

IV. Analysis & Outlook
1. Short-Term (1–2 weeks)
- Price trend: National average price is expected to oscillate within RMB 5,790–5,810/ton; regional markets may experience minor fluctuations due to localized supply-demand imbalances (e.g., Henan’s premium-grade ethanol could dip to RMB 5,620/ton).
- Key drivers: Weak demand from the chemical sector counterbalances sluggish growth in the fuel sector; cost support remains modest.

2. Medium-Term (1–3 months)
- Price trend: Should raw material prices rebound or fuel-sector policy incentives intensify (e.g., enhanced subsidies), the national average could surpass RMB 5,850/ton; conversely, sustained demand weakness may push the average down toward RMB 5,750/ton.
- Critical variables: Summer operating rates of chemical enterprises, international crude oil price volatility, and progress in ethanol fuel adoption.

V. Forecast & Recommendations
1. Price Forecast
- Q3 2026 national average price is projected to center around RMB 5,750–5,850/ton. For the full year, prices are expected to follow a “low-in-the-first-half, high-in-the-second-half” pattern, with a modest seasonal uptick in Q4 driven by holiday-related consumption.

2. Industry Recommendations
- Producers: Optimize feedstock mix (e.g., increase wheat substitution for cassava), invest in technology to lower energy consumption, and expand client base toward high-value fuel applications.
- Traders: Monitor inter-regional price differentials (e.g., RMB 250–300/ton spread between Henan and Hebei anhydrous ethanol) to capture arbitrage opportunities; strengthen long-term contractual arrangements with downstream customers to lock in margins.
- Investors: Focus on industry leaders (e.g., Lan Yan New Energy, Lü Neng Fuel Technology) demonstrating capacity expansion and technological breakthroughs; avoid exposure to small- and medium-sized enterprises facing acute cost pressures.

About Ethanol

Ethanol is a clear, colorless, volatile liquid with a characteristic mild, sweet odor and a burning taste. It is a primary aliphatic alcohol (C₂H₅OH), miscible with water and most organic solvents, with a boiling point of 78.4 °C and a melting point of −114.1 °C. Ethanol serves as a key chemical intermediate in the synthesis of ethyl esters, ethylamines, acetaldehyde, and vinyl acetate, and is widely employed as a solvent across pharmaceuticals, coatings, inks, and personal care products. It is also used in the production of alcoholic beverages, fuel blends (e.g., E10, E85), and as a disinfectant in healthcare formulations.

MedicalA solution of 70-85% of ethanol is commonly used as a disinfectant and it kills organisms by denaturing their proteins and dissolving their lipids. It is effective against most bacteria and fungi, and many viruses, but is ineffective against bacterial spores. This disinfectant property of ethanol is the reason that alcoholic beverages can be stored for a long time[9]. Ethanol also has many medical uses, and can be found in products such as medicines, medical wipes and as an antiseptic in most antibacterial hand sanitizer gels. Ethanal can also be used as antidote. It competitively blocks the formation of toxic metabolites in toxic alcohol ingestions by having a higher affinity for the enzyme Alcohol Dehydrogenase (ADH). Its chief application is in methanol and ethylene glycol ingestions. Ethanol can be administered by the oral, nasogastric or intravenous route to maintain a blood ethanol concentration of 100-150 mg/dl (22-33 mol/L)[10].FuelEthanol is flammable and burns more cleanly than many other fuels. Ethanol has been used in cars since Henry Ford designed his 1908 Model T to operate on alcohol. In Brazil and the United States, the use of ethanol from sugar cane and grain as car fuel has been promoted by government programs[11].The Brazilian ethanol program started as a way to reduce the reliance on oil imports, but it was soon realized that it had important environmental and social benefits[12]. The fully combusted products of ethanol are only carbon dioxide and water. For this reason, it is environmental friendly and has been used to fuel public buses in the US. However, pure ethanol attacks certain rubber and plastic materials and cannot be used in unmodified car engines[13].The alcohol-based alternative fuel that is blended with gasoline to produce a fuel with a higher octane rating and fewer harmful emissions than unblended gasoline. A mixture containing gasoline with at least 10% ethanol is known as gasohol. Specifically, gasoline with 10% ethanol content is known as E10. Another common gasohol variant is E15, which contains 15% ethanol and 85% gasoline. E15 is only appropriate for use in Flex Fuel vehicles or a very small percentage of the newest vehicles[14]. In addition, E85 is a term used for a mixture of 15% gasoline and 85% ethanol. E85 keeps the fuel system clean because it burns cleaner than regular gas or diesel and doesn't leave behind gummy deposits. Beginning with the model year 1999, a number of vehicles in the U.S. were manufactured so as to be able to run on E85 fuel without modification. These vehicles are often labeled dual fuel or flexible fuel vehicles, since they can automatically detect the type of fuel and change the engine's behavior to compensate for the different ways that they burn in the engine cylinders[15].The use of ethanol-diesel fuel blends is growing around the world, and are designed to provide renewable, cleaner burning fuel alternatives for off-road equipment, buses, semi-trucks and other vehicles that run on diesel fuel. With the addition of ethanol and other fuel additives to diesel, the characteristic black diesel smoke is eliminated and there are significant reductions in particulate matter, carbon monoxide, and nitrogen oxide emissions. It is also possible to use ethanol for cooking as a replacement for wood, charcoal, propane, or as a substitute for lighting fuels, such as kerosene[16].Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 89% of the world's production in 2008. In comparison with the USA and Brazil, Europe ethanol for fuel production is still very modest. Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter[17].BeverageSignificant volumes of ethanol are produced for the beverage and industrial markets from agricultural feedstock. Ethanol produced for these industries differs from ethanol for fuel only in its strength, which can vary between 96% and 99.9% and in its purity, depending on the end use. Beverage and drinks industry may be the best-known end-user of ethanol. It is used to make many kinds of spirits, such vodka, gin and anisette. High standards and processes are required for ethanal used in the production of spirit drinks.OthersThe ethanol used as an intermediary product by the chemical, pharmaceutical or cosmetics industry is in many cases of the highest and purest possible quality. These are premium markets due to the additional steps in the alcohol production process that are necessary to achieve the required purity. Same high standards and purity requirements apply in food industry, such as flavors and aromas extraction and concentrations, as well as paints and thermometers. Ethanol can be used in de-icer or anti-freeze to clear the car windscreen. It also is contained in perfumes, deodorants, and other cosmetics[18].
Ethanol is highly soluble in water and organic solvents, but poorly soluble in fats and oils. Ethanol itself is a good solvent, which is used in cosmetics, paints and tinctures[2]. Density of ethanol at 68 °F (20 °C) is 789 g/l. Pure ethanol is neutral (pH ~7). Most alcoholic beverages are more or less acidic.Ethanol/ethyl alcohol is highly flammable liquid, hygroscopic, and fully miscible in water. Ethanol is incompatible with a large number of chemicals such as strong oxidising agents, acids, alkali metals, ammonia, hydrazine, peroxides, sodium, acid anhydrides, calcium hypochlorite, chromyl chloride, nitrosyl perchlorate, bromine pentafluoride, perchloric acid, silver nitrate, mercuric nitrate, potassium tert-butoxide, magnesium perchlorate, acid chlorides, platinum, uranium hexafluoride, silver oxide, iodine heptafluoride, acetyl bromide, disulphuryl difluoride, acetyl chloride, permanganic acid, ruthenium (VIII) oxide, uranyl perchlorate, and potassium dioxide.

This chemical is included in Basic Chemicals - Alcohols. See more about what is Ethanol and Ethanol SDS information.

Find Ethanol supply and Ethanol suppliers on Guidechem to meet your sourcing needs from 381 trusted and certifedsuppliers.

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