Ethanol Price in South China Fluctuated Upward

SCI99

2019-02-28

Ethanol Price in South China Fluctuated Upward

The offers of ethanol in major producing areas such as Northeast China, etc. went up generally after the Spring Festival holiday, buoyed by the demand and the low supply. Similarly, the offers in South China moved upward following the price increase in major producing areas.

In South China, major molasses-based ethanol distilleries showed great interest in sales before the Spring Festival holiday. Moreover, the replenishment from downstream enterprises in Southwest China, etc. was on a need-to basis. Thus, the ex-works price of molasses-based ethanol hovered at RMB 5,050-5,150/mt (tax included) before the holiday. The offers rose by RMB 50-100/mt in some regions after the holiday due to the overall low stocks at distilleries. The closing price of molasses-based ethanol was RMB 5,100-5,200/mt (tax included) recently.

The cost and the low supply lent great support to the price increase of molasses-based ethanol in South China. The overall stock level of spot ethanol resources remained low after the Spring Festival holiday, and most distilleries resumed production in mid-and-late February.

In addition, the molasses price remained largely unchanged after the holiday, and the delivered price of molasses in some regions was high, pushing up the offers of molasses-based ethanol.

At present, the molasses-based ethanol price in Guangxi stays the same as that in Guangdong. The supply of molasses-based ethanol in South China moves up gradually, and SCI predicts that the price will be stable recently.

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