China Ethanol Output Fell in February
In February, China’s ethanol output totaled 619.8kt, down 27.74% M-O-M. Therein, the output of fuel ethanol and non-fuel ethanol both trended down. The fuel ethanol output fell to 192.8kt affected by the higher cost pressure and short supply of stable grain. The non-fuel ethanol output declined to 427kt, down 31.75% Y-O-Y, hitting a new low since October 2020. During the Spring Festival holiday, some plants shut units down and suffered production losses. In particular, the output of corn-based ethanol dropped obviously, exerting a great impact on the monthly total output.
In February, China’s corn-based ethanol output was 275.2kt, down 39.87% M-O-M. Impacted by the tight supply and rising prices of feedstock corn, corn-based ethanol producers suffered losses. According to SCI, the theoretical gross profit from producing 95% corn-based ethanol was RMB -124/mt in February. Most producers showed weaker production enthusiasm, and the operating rates at large-scale plants in Northeast China were low. More small and medium-scale plants shut units down. In Henan, corn-based ethanol plants also shut units down during the Spring Festival holiday.
