RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Chinese ethanol imports to tumble by two-thirds, as production rises

Twitter Linkedin

Chinese fuel ethanol imports will plummet by nearly two-third in 2017, thanks to trade restrictions and rising domestic production, US officials said.

The US Department of Agriculture's Beijing bureau saw 2017 imports of bioethanol, ethanol produced from organic matter for use as road fuel, at just 300m litres, down from 853m litres a year earlier.

The outlook follows a series of increases to Chinese duties on US imported ethanol, and an ongoing drive to increase domestic ethanol use.

Rising domestic production

The bureau forecast 2017 fuel ethanol production at a record 3,550m litres, up 12.6% year on year, citing "strong demand, plentiful feedstocks, and continued government support".

"Policy changes have reversed the fortune of China's ethanol producers, driving production higher," the bureau said.

China's latest five year plant targets ethanol production at 6,335 million liters by 2020.

Most of China's ethanol production is based on corn, of which the country has very large stocks.

Consumption in 2017 is seen as largely unchanged year-on-year, at 3,849m litres.

US out of the market

In 2016 almost all Chinese ethanol imports came from the US, but this picture will change in 2017, thanks to a package of measures including higher tariffs, as well as special anti-dumping and anti-subsidy duties on major American producers.

This month Todd Becker, chief executive of US ethanol group Green Plains, told investors that the company outlook was based on "zero" US exports to China this year.

And ADM boss Juan Luciano this month told investors that US exports to China in 2017 were "questionable".

By William Clarke

Twitter Linkedin
Related Stories

Weekly grain, oilseeds market view from Europe

What does Vivergo ethanol plant shutdown mean for UK wheat?... Eu wheat export prospects... EU rapeseed imports...

Evening markets: export data hold sway in ag markets - helping cotton

... but not corn and soybean futures. Wheat futures fare a bit better, despite talk of Russia strengthening its grip on world trade

Cotton takes the glory in weekly export data

Wheat data in weekly EU and US export reports are not bad. But US cotton export sales are the highest for this season, and beyond

Weak prices, poor weather leave EU on course for 2018 wheat area drop

Strategie Grains ditches expectations of a rise in EU soft wheat sowings for the 2018 harvest. But barley area will rise
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069