China's fuel ethanol prices have pushed up significantly today. The quotations of companies in the Heilongjiang region of Northeast China have continued to rise. The main reasons for the increase are: 1. The edible ethanol production of Heilongjiang Hongzhan and Heilongjiang Wanli Runda has increased fuel ethanol production, and the fuel ethanol production of the two companies is expected to be reduced by about 50%; 2. During the low-price period in the early period, the company's contract signing was okay, and the inventory was not high; 3. There were low-priced downstream stocking; 4. Transportation prices were high and fluctuated. As of press time, fuel ethanol in Heilongjiang was 6,350 - 6,550 yuan/ton, an increase of 250 yuan/ton.
Fuel ethanol supply: 67.41% of the overall fuel started, COFCO Zhaodong produced normally, Wanli Runda produced reduced fuel production, Jilin fuel was normal, Liaoyuan Jufeng stopped production, SDIC Tieling produced, SDIC Jidong produced, SDIC Hailun produced, Henan Nanyang Tianguan resumed production this month, and Hongzhan Huanan produced. Bayan produces normally. Anhui COFCO is producing normally.
Supply of coal-based ethanol: 81.55% of coal-based ethanol was started, and normal production of large factories returned to full production. Some of them were shut down, and the Henan factory was not restored to full production.
Raw materials: China's corn feed consumption will stop increasing and decline in December, the demand for deep processing consumption will continue to grow, the supply of corn on the market in the new season will continue to grow, and the overall supply will remain sufficient. As more corn moisture drops to standard levels, a large number of traders and reserve companies will concentrate on entering the market to purchase, and there is an impetus to push up corn prices to rebound from the bottom. In terms of ddgs: Recently, Sui has a strong wait-and-see attitude in the Chinese market. DDGS transactions have been sluggish. Demand in the terminal market is average. Downstream companies use and purchase on demand, and fewer large orders have been sold, which continues to be negative for DDGS prices. Dried cassava began to be concentrated in late December, and the market has a high wait-and-see attitude. In the early stage, due to drying, the quality was poor and the price may be weak.
Supply side: In the short term, China's ethanol production and northeastern food supply are stable. Ethanol supply in East China increased due to the increase in port cargo arrivals. Coal quality ethanol In December, coal quality ethanol was stable. Waiting for Anhui Huaibei Tanxin's new coal-based ethanol production capacity of 600,000 tons/year to be put into production.
China's ethanol prices are expected to stabilize in the short term. The Northeast region maintains stable production. Downstream chemical industries just need to purchase, and some port orders are shipped. Short-term high freight rates fluctuate and are sent to high prices for consolidation. After East China's output increases, there is a game of supply in Northeast China. Huadong Chemical just needs to purchase, waiting for the changes in construction after the price of new dried cassava comes into effect. It will remain in the short term, and the price will be stable or may fluctuate slightly. Short-term demand in Henan is average, and prices are stable or consolidated. In terms of fuel, companies are obviously willing to increase prices, with some inventories low and short-term price consolidation. Short-term price increases in coal ethanol.
