Latest customs data continue to show significant changes to patterns in Spanish ethanol traffic, with rising imports and exports in the first half of this year.
Spain has traditionally been a net exporter of ethanol, shipping modest amounts of fuel grade product to other EU countries and importing medicinal and beverage ethanol from Pakistan and France. Events of note in the domestic market have been scant since 2017 when bankrupt conglomerate Abengoa sold its 430,000 t/yr capacity plants to Vertex Bioenergy,, which boosted Spanish output.
But in the first half of this year customs data show Spain imported 130,000t, up sharply from 70,000t on the year and easily the highest volume imported for the period. Spain imported 14,000t in June, down from 17,000t in May, but up from 7,000t on the year.
This year's increase is the result of a particularly high 40,000t of deliveries from the US in January-June. This compares with negligible imports from the US in 2019-22. Imports are being led by a single trading firm and two European energy companies. These firms initially looked to import US product and then re-export it to other EU buyers. But imports may also challenge domestic output.
Shipments of 5,000t cargoes are arriving from Lake Charles in Louisiana. Around 35,000t has gone into tanks in Spain's east coast port of Tarragona and the remainder to the southern port of Cadiz. US corn prices have been low, boosting competitiveness, while ethanol demand is increasing in Europe as a blendstock for rising gasoline consumption.
Imports rose sharply in the first quarter of the year, with Spain a rare net importer of ethanol in March. Since then exports have risen as some volumes were re-exported to EU buyers, mainly in France, Italy and Portugal. Exports rose to 150,000t in January-June from 125,000t year on year, the highest on record.
Consumption in Spain remains weak as the country merges all biofuels into a single state mandate, tempering ethanol demand. The country's strategic reserve Cores estimates consumption at 13,000t in June, flat on the month and year. Demand was 75,000t in the first six months of the year, compared with 90,000t in January-June 2022.
As demand has fallen and Spain's first half net export level declined — from 55,000t to 20,000t on the year — apparent domestic ethanol output appears to be lower. Estimated output in the first half of the year was 95,000t, down from 135,000t in the same period last year and from 175,000t in the first half of 2021. Apparent output in June was 23,000t, flat on the year.
