Henan 95% Ethanol Prices Decline Rapidly

SCI99

2020-11-13

Henan 95% Ethanol Prices Decline Rapidly

From last week, the premium-grade ethanol prices in Henan dropped by RMB 200/mt to RMB 6,680-6,700/mt (tax included), affected by the declines in feedstock corn prices. Thus, most market players in the surrounding markets held a wait-and-see sentiment. In 2020, the rapid ups and downs in Henan increased the difficulty to predict the 95% ethanol price trend.

In terms of the feedstock corn, its prices fell from RMB 2,540/mt to RMB 2,500/mt. After the National Day holiday, market players were reluctant to sell at lows, and their sentiments exerted a significant impact on the ethanol price trend. Calculated at the present corn prices and the corn-based ethanol prices in Henan of RMB 5,700/mt, the gross profit at corn-based ethanol plants is RMB 300/mt, so ethanol producers’ profitability is passable.

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