Ethanol Producers in N-China and S-China Both See Profit Losses
Before the Mid-Autumn Festival, the market demand remained flat. China’s 95% ethanol prices showed a downtrend amid the tug of war between supply and demand, and the production profit showed fluctuations accordingly. According to SCI, the profit from producing cassava-based ethanol turned from positive to negative. On September 3, the daily profit from producing cassava-based ethanol in northern Jiangsu was RMB-41.66/mt, and that from producing corn-based ethanol in Jilin fell to RMB -221.25/mt.
From August, the costs at cassava-based ethanol plants showed an uptrend due to the increase in ocean freight. The transport capacity was limited, and domestic ports for unloading bulk cargo were limited. Recently, Rizhao port was under pressure from environmental protection inspection. In Thailand, the feedstock supply was limited, so the cassava slice prices and ocean freight both rose slowly. The delivered prices of Northeast China-origin resources stayed at lows, pushing the offers for cassava-based ethanol to drop. At present, cassava-based ethanol plants suffered profit losses, exerting a negative impact on production. If the ethanol prices continue to fall, the output of cassava-based ethanol will be affected from October to November.
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