Chinese Ethanol Prices Rise Amid Tight Market Conditions
The Chinese ethanol market has seen significant gains since September, driven by factors such as reduced supply, tight market availability, and rising downstream demand. According to SunSirs, the domestic price of ethanol has risen 1.40% to 5,570 RMB/ton since September.
The national average corn price has increased slightly, with regional prices varying: Northeastern prices remain stable, while Henan's have declined. However, this mixed impact on costs does not seem to be affecting the ethanol market as much.
Ethanol production facilities with an annual capacity of 4.24 million tonnes underwent shutdowns last month. China's ethanol output in August increased by 28,700 tonnes (3.56%) month-on-month to 835,000 tonnes, bringing cumulative production for the first eight months to 7.0051 million tonnes.
The demand side also saw a boost, with industries such as fine chemicals, solvents, and fuel blending ramping up restocking efforts ahead of the holiday. This led to a steady recovery in market trading activity, with total domestic demand reaching 182,200 tonnes during the period.