China Ethanol Output Touches Annual Low in August
In August 2021, China’s non-fuel ethanol output may reach 385kt or so, hitting a record low since March 2019. Driven by annual maintenance and unfavorable profits, China’s ethanol producers showed weak production enthusiasm. In H1 September, most ethanol plants will resume operation, pushing the output to grow to over 450kt.
Ethanol producers showed weak production enthusiasm due to bad profits.
In August 2021, the profit from producing 95% ethanol stayed at lows. In particular, corn-based ethanol producers suffered profit losses. As of August 27, the monthly profits from producing corn-based ethanol in Jilin averaged RMB -160/mt. Affected by the rising ocean freight, the profit at cassava-based ethanol plants continued to drop. As of August 27, the monthly profits from producing cassava-based ethanol in northern Jiangsu averaged RMB 113/mt, down RMB 27/mt M-O-M. Due to profit losses, some ethanol enterprises showed limited interest in production recovery.
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