2020 China Ethanol Prices Rise to an All-Time High
In 2020, China’s 95% ethanol market prices continued to rise. In February 2020, 95% ethanol prices in northern Jiangsu hit a record high since March 2012, and the prices trended up again in April after rapid drops. In H2, 2020, downstream users purchased feedstock at highs, so the cost pressure gradually rose. At present, China’s ethanol prices exceed the highest prices in February 2020. Taking Northern Jiangsu as an example, the ethanol prices rose to RMB 6,700-6,800/mt (tax included) on October 23, up 23% from the first trading day in early 2020.
From October, more downstream users maintained basic purchases. After the National Day holiday, the operating rate at ethyl acetate plants improved and reached 52.80% on October 21, up 4.89% M-O-M. Besides, white spirits users showed replenishing appetites. This month, the weather became cold, and white spirits resumed operation in succession. On the one hand, the previous feedstock inventory consumed; on the other hand, the plants stocked up for the winter. In Southwest China, the demand for ethanol from the white spirits industry improved greatly. Zizhong Yinshan Hongzhan Industrial supplies ethanol, and most Henan resources flow into Southwest China. Thus, in October, the ethanol prices in Henan rose by RMB 675/mt as of October 23.
