# Commodities 2023: European ethanol market to face high energy costs, feedstock challenges

> S&P Global expects European ethanol producers to face negative margins through the first half of 2023 because of high energy costs, seasonally weak demand and grain procurement challenges tied to the Russia-Ukraine conflict. It also notes that a recession could cut demand and that gas prices may stay volatile in a cold winter.

- Date: 2023-01-05 · published 2023-01-05T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/37797-commodities-2023-european-ethanol-market-to-face-high-energy-costs-feedstock
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

High natural gas costs and a weak ethanol outlook could reduce European ethanol output and grain use, while elevated energy prices add cost pressure across the feed chain.

## Read by commodity

- NATGAS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2022-02-22 | [LNG market supply-demand balance to remain tight in 2022 - Energy News, Top Headlines, Commentaries, Features & Events - EnergyNow.com](https://feedsoft.ai/events/42885-lng-market-supply-demand-balance-to-remain-tight-in-2022-energy-news-top.md) | -2.0% | +7.0% |
| NATGAS | 2024-12-17 | [Global natural gas market outlook: European supply challenges and regional demand dynamics](https://feedsoft.ai/events/27140-global-natural-gas-market-outlook-european-supply-challenges-and-regional.md) | +7.0% | +40.3% |
| NATGAS | 2022-07-05 | [European stock markets tumble on rising fears of recession \| Stock markets \| The Guardian](https://feedsoft.ai/events/10290-european-stock-markets-tumble-on-rising-fears-of-recession-stock-markets-the.md) | +15.3% | +43.6% |
| NATGAS | 2022-08-31 | [European Fertilizer Production Falls Due to High Gas Prices 31.08.2022 - UkrAgroConsult](https://feedsoft.ai/events/40340-european-fertilizer-production-falls-due-to-high-gas-prices-31-08-2022.md) | -12.0% | -25.8% |
| NATGAS | 2021-09-21 | [The Commodities Feed: Risk-off move hits the complex \| snaps \| ING THINK](https://feedsoft.ai/events/6381-the-commodities-feed-risk-off-move-hits-the-complex-snaps-ing-think.md) | +9.8% | -2.3% |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/010523-european-ethanol-market-to-face-high-energy-costs-feedstock-challenges-in-2023

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.