The state encourages the development of the fuel ethanol industry, and the company’s production capacity is expected to usher in a period of expansion.
As an effective way to detoxify old corn, corn fuel ethanol has become the focus of national support. In September 2017, 15 departments including the National Development and Reform Commission and the Energy Bureau jointly issued the “Implementation Plan on Expanding the Production of Biofuel Ethanol and Promoting the Use of Ethanol Gasoline for Vehicles”, pointing out that the nationwide promotion of the use of ethanol gasoline for vehicles will be achieved in 2020. In 2016, my country’s motor gasoline was 120 million tons. According to the blending ratio of 10%, 12 million tons of fuel ethanol are needed. At present, my country’s fuel ethanol production capacity is less than 3 million tons, and the gap is more than 9 million tons. The industry is ushering in a period of rapid expansion. Since 2017, the deployment of fuel ethanol projects has accelerated. According to incomplete statistics, in 2017, the newly signed corn fuel ethanol production capacity reached 2.4 million tons, of which COFCO owns 900,000 tons, accounting for 37.5%. COFCO continues to lead! If COFCO continues to maintain its market share, it is expected to continue to expand production capacity in the future, and the company will usher in a period of rapid production capacity expansion.
The price of corn is low, the price of crude oil is rising, and the profit of fuel ethanol is increasing rapidly.
At the end of 2017, my country’s corn inventory consumption ratio was as high as 109%. Due to this suppression, it is expected that corn prices will fluctuate at a low level. Affected by factors such as OPEC production cuts and the unstable situation in the Middle East, crude oil prices rose rapidly. In May 2018, crude oil prices have exceeded 70 US dollars. / barrel, which is about 30 US dollars / barrel higher than the lowest price in June 2017, and the settlement price of fuel ethanol in my country has also reached 7038 yuan / ton, which is about 815 yuan / ton higher than the lowest price in June 2017. We estimate that the current gross profit per ton of fuel ethanol in the Bengbu plant exceeds 1,200 yuan, and the gross profit per ton of the Zhaodong plant exceeds 1,600 yuan.
Post time: Jun-29-2022