Pakistani ENA ethanol price soars on sanitizer demand

Singapore — Pakistani ENA-grade ethanol prices have soared 40%-47% since the start of the year on frenetic demand for hand sanitizer in Europe because of the coronavirus pandemic.

Pakistani ENA grade ethanol cargoes are finding eager buyers in Europe and the Middle East.

Hand sanitizer shortages in several European countries caused several beverage-grade manufacturers to switch to hand-sanitizer production as well as luxury goods group LVMH pledging to use its perfume and cosmetics division's facilities to produce sanitizer.

Demand is buoyant for Pakistani ethanol, with one producer saying his phone was ringing non-stop.

Pakistani ENA grade cargoes in bulk were pegged at $750/mt FOB Karachi at the beginning of the year and rising to $950/mt last week are were mostly sold out at the moment.

The industry is now repackaging the product into ISO tanks.

Presently, ENA grade ethanol in ISO tanks are pegged at $1050-$1100/mt FOB Karachi.

"Demand for hand sanitizer has gone up 1,000 or 2,000 times, although there is a slight fall in demand for beverage grade ethanol," a trader said.

With Pakistani cargoes mostly booked, European demand must be met by other origins. In addition, Pakistan had entered into lockdown, with possible disruption to ethanol production.