China Ethanol Price Falls to Lows Due to Tepid Demand
Before the Mid-Autumn Festival, the demand for ethanol showed a downtrend, and white spirits users showed weak replenishing appetites. Accordingly, China’s ethanol prices remained in a downtrend. As of September 16, the ethanol prices in northern Jiangsu and Shandong fell to RMB 6,300/mt (tax included), and most producers suffered profit losses.
In northern Jiangsu, the 95% ethanol prices fell to a 20-month low. Before the Mid-Autumn Festival, white spirits users showed tepid demand for corn-based ethanol. Besides, some chemical users in Jiangsu halted production last week, so the demand for ethanol fell notably.
Chart 1 2020-2021 Northern Jiangsu 95% Ethanol Price Trend
According to SCI, China’s ethyl acetate operating rate fell to 34.3% this week, down 11.7% W-O-W. This week, ethyl acetate producers in Jiangsu, Guangxi and Shandong shut units down, and some producers reduced their operating rates, exerting an obvious impact on the demand for ethanol. On September 16, the ethyl acetate industry’s ethanol daily consumption volume declined to 3.25kt or so, down 2.50kt W-O-W. At present, downstream users’ restart time is uncertain, so some ethyl acetate plants may postpone their ethanol procurement plans.
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