07 January 2010 09:56 [Source: ICIS news]
SINGAPORE (ICIS news)--China has significantly reduced its import tariffs for denatured ethanol to 5% from 30% effective this year, paving the way for more imports, its Ministry of Finance said on Thursday.
The tariff cuts that would encourage more ethanol imports were in sync with the government's policy on food security since ethanol is derived from corn. The Chinese government discourages the planting of corn for industrial use.
"Some people are looking at imports, however it is still early days to investigate the impact," a Chinese trader said.
Other market participants pointed out that the material was hard to obtain as international supply was very tight.
Ethanol prices were last assessed stable at $800-850/tonne (€552-587/tonne) CFR (cost and freight) NE (northeast) Asia for the hydrous grade amid thin trade, according to global chemical market intelligence service ICIS pricing.
Domestic Chinese hydrous corn-based ethanol parcels in the northeast region were more competitively priced at yuan (CNY) 5,100-5,500/tonne ($747-805/tonne) ex-tank, muting buying interests, traders said.
The tariff rates for ethanol imports without denaturants were maintained. Those from Southeast Asia was being levied a 5% tariff, while imports from Chile and Pakistani are tax free. A 40% tariff applies to imports from other regions like Brazil, the finance ministry said.
($1 = €0.69 / $1 = CNY6.83)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|