Price Downtrend of Cassava-based Ethanol in East China Continued

In early December, thedownstream major chemical enterprises in East China finished the procurement ofethanol resources, in which the proportion of corn-based ethanol from NortheastChina increased, given that the cassava-based ethanol in East China was notprice competitive. Thus, the cassava-based ethanol price moved down despite theproduction losses at distilleries.             

Recently, the ex-works offers at major cassava-basedethanol distilleries dropped by RMB 30/mt. The delivered price of corn-basedethanol from Northeast China to southern Jiangsu by ship was RMB5,230-5,250/mt, and that through automobile transportation was around RMB5,300/mt. However, the delivered price of cassava-based ethanol from Shandongand northern Jiangsu to southern Jiangsu reached around RMB 5,480/mt. Thus, itwas difficult for the cassava-based ethanol distilleries in East China to gaina price advantage in the short term.           

The cassava-based ethanol distilleries continuedsuffering production losses since March 2018. The theoretical production costsat China’s cassava-based ethanol distilleries still mounted to RMB 5,356/mt, basedon $208/mt FOB price of Thailand-origin cassava slice.  

In Northeast China, although the sales at corn-basedethanol distilleries were robust, the profits remained unsatisfactory. Since therecent corn price in Jilin was RMB 1,790-1,840/mt (tax included) generally, theethanol production costs were calculated at RMB 4,798/mt, based on the DDGSprice of RMB 1,850/mt. The ethanol price in Jilin was RMB 4,900-5,000/mt (taxincluded), and some low-end prices hovered around RMB 4,850/mt. Therefore, theprofits kept quite low.      

……

More detailed information, please click "Read more".