Bayu Circle Is Famous, What About The Ethanol Market?

May 19, 2021

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Xinhua News Agency, Shenyang, May 14 (Reporters Zhang Yifei and Zhao Hongnan) On the 14th, the Anhui Health and Health Commission notified the trajectories of 2 confirmed cases in Bayuquan District, Yingkou City from April 26 to May 9. At 15:00 on the 14th, Yingkou City, Liaoning Province issued a notice to immediately implement stricter epidemic control measures.


Where is Bayuquan?

Yingkou Development Zone (Bayuquan District) was formerly Bayuquan Township, Yuangai County. In May 1984, the Bayuquan District of Yingkou City was established with the approval of the State Council. In October 1992, the State Council approved the establishment of a national-level economic and technological development zone-Yingkou Economic and Technological Development Zone.


In recent years, the development zone has seized the favorable opportunities for the implementation of major strategies such as "One Belt One Road", a new round of northeast old industrial base revitalization, Liaoning Coastal Economic Belt, Liaoning Free Trade Zone-Yingkou Area, etc., and gave full play to its location, port, and environment. Such comprehensive advantages, focusing on accelerating the pace of opening up, and actively constructing an export-oriented economic development pattern, have become the vanguard of Yingkou's overall development and an important window for Liaoning to open up.


What is the relationship between Bayuquan and ethanol?

Yingkou Bayuquan is an important port for ethanol export. Bayuquan ethanol storage tanks have a capacity of about 50,000 tons. Others are in Jinzhou Port. The port carries 14% of the local ethanol output and is mainly sent to East and South China.


At present, the relevant person at the port said, "As long as we cooperate with the government according to the requirements of the government, the business will be carried out normally." There is a lot of stock in the port in the early stage, and the shipping is currently being shipped normally.


The main biofuel ethanol in my country is corn ethanol and cassava ethanol.


This year, due to the high price of corn and the high cost of corn ethanol, the production cost of cassava ethanol is better than corn ethanol. The arbitrage of corn ethanol sent to East China is closed. The East China market basically consumes local cassava ethanol and supplements with corn ethanol. The amount of corn ethanol arriving in East China by ship has decreased compared with previous years. At present, the port inventory is abundant, and downstream traders are not affected by this.


In terms of automobile transportation, some factories and downstream factories have issued written documents, and vehicles in the epidemic area will not accept loading and unloading for the time being.


How is the ethanol market performing?

As of the evening of May 17th, the price of general grade ethanol in Northeast China has risen, and the performance of large factories is particularly obvious, with an increase of 100-200 yuan/ton. The supply of raw materials is tight, the cost of enterprises is high, the early stage storage is obvious, and the price is under various factors. As a result, the equipment of enterprises in the northeast has fluctuated significantly. Some large factories have shut down, and some production shutdown devices have been opened one after another, and there will be news of factory start and shutdown in the follow-up.


As of press time, prices in other regions except the Northeast region have been stable, with slight fluctuations in Henan, mainly due to the shutdown of individual factories in Mengzhou and the shutdown of some factories in Xinxiang. However, many companies have inventory and market prices have not fluctuated much.


The market in East China heard that the latest transaction price of dried cassava has risen to US$248/ton, and the shipping price has returned to a high of US$30/ton. Production costs in East China have risen. Many companies have small capital and inventory impacts and need to ship in time to maintain operation. In the short term, prices in East China are stable or there is room for a slight increase.


Source: Mobile Public Account

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