China ethanol rises up to $14/t on feedstock costs

07 May 2008 10:39  [Source: ICIS news]

SHANGHAI (ICIS news)--East China producers have increased ethanol prices by yuan (CNY) 50-100/tonne ($7.15-14.31/tonne) to offset sagging profits amid high feedstock tapioca values, buyers and sellers said on Wednesday.

 

Ethanol prices were assessed at CNY5,200-5,550/tonne EXWH (ex-warehouse) E China (east China), traders said.

 

“The higher feedstock costs squeezed our margins coupled with [higher] water, electricity costs,” a producer said.

 

Most local producers imported tapioca feedstock for ethanol production, with present prices about CNY1,660/tonne CFR (cost and freight) CMP (China Main Port).

 

Many producers in Jiangsu province had shutdown production to compensate for squeezed margins on the high feedstock values and sluggish downstream demand from China’s white spirits and chemicals sectors where ethanol was used, market sources said.

  

Meanwhile, from 1 May to 30 June, the Ministry of Railways would prioritise the transport of grain from the country’s north to the south in a bid to stabilise the price of rice, producers said, adding this would hit the distribution of ethanol.  

 

($1 = CNY6.99)

 

Vincent Qi contributed to this article

 

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