Ethanol Supply and Demand Both Drop
China’s ethanol prices continued to drop, notching a 20-month low. After the Mid-Autumn Festival, the ethanol operating rate also declined, especially in East China. In East China, the ethanol operating rate and effective operating rate fell to 29% and 44% respectively, down 7% and 12% from September 15. A few ethanol plants plan to resume operation, but some plants’ restart time is uncertain.
Ethanol operating rate in East China dropped, and the market prices hovered at lows.
In East China, the ethanol effective operating rate fell by 12%, and the daily output dropped 2.72kt. About six plants shut units down, and the affected capacity exceeded 500kt/a. It is predicted that the ethanol output in East China will be low before China’s National Day. At present, some ethanol plants in northern Jiangsu and southern Jiangsu shut units down. In Thailand, the feedstock supply was limited, and there was obvious demurrage at Taixing port and Lianyungang port. The feedstock arrival was delayed by the typhoon weather. As of September 22, the ethanol prices in Jiangsu were RMB 6,270-6,300/mt.
Chart 1 2021 East China Ethanol Effective Operating Rate Trend
Ethyl acetate price exceeded RMB 10,000/mt before the Mid-Autumn Festival.
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