Ethanol: A brief analysis of domestic ethanol imports and exports in July – Escalating trade wars keep the domestic market stable for now

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Ethanol: A brief analysis of domestic ethanol imports and exports in July – Escalating trade wars keep the domestic market stable for now. Source: Zhongyu Information. Introduction: Starting from May 10, the United States raised the tariff rate on goods worth $200 billion imported from China from 10% to 25%； Subsequently, it was announced that a 10% tariff would be imposed on goods worth approximately $300 billion imported from China, to be implemented in two phases starting from September 1 and December 15 this year. On the evening of August 23, the Tariff Commission of the State Council issued two announcements: one was the decision to impose tariffs on imported goods originating from the United States worth approximately $75 billion (in Annex 2, item No. 146, unmodified ethanol, tariff code 22071000) ； Second, it was decided to reinstate additional tariffs on cars and auto parts originating from the United States. The details of China’s ethanol import and export figures for July 2019 are as follows: http://yjyxxzx.xj-tianye.com/res_base/cms_com_www/upload/article/image/2019_3/8_27/6zhzjztaljgs.png http://yjyxxzx.xj-tianye.com/res_base/cms_com_www/upload/article/image/2019_3/8_27/p2izjztai3ip.png According to customs data, China exported 551.416 thousand liters of ethanol in July 2019; unmodified ethanol accounted for 99.1% of this amount, representing a 56.79% increase compared to the previous month. As for modified ethanol, it was used for domestic consumption only, with only 5 thousand liters being exported. http://yjyxxzx.xj-tianye.com/res_base/cms_com_www/upload/article/image/2019_3/8_27/3shijztaike8.pngIn July 2019, 5 thousand liters of modified ethanol were exported from China, to Thailand. http://yjyxxzx.xj-tianye.com/res_base/cms_com_www/upload/article/image/2019_3/8_27/200wjztaj6wl.png In July 2019, the main countries and regions to which unmodified ethanol was exported in China were North Korea and Taiwan, China. http://yjyxxzx.xj-tianye.com/res_base/cms_com_www/upload/article/image/2019_3/8_27/s6tkjztajg5t.png According to customs data, in July 2019, China imported a total of 14,152.05 kiloliters of ethanol, of which 5.69 kiloliters were modified ethanol of any concentration. Given that the domestic ethanol market is currently at a low level and the price advantage of imported products is not significant, coupled with the large amount of new fuel production capacity in the country, imports of modified ethanol are on a downward trend ； Unmodified ethanol with a concentration of 80% or higher accounted for 14,146.36 thousand liters, representing 99.96% of the total imports. http://yjyxxzx.xj-tianye.com/res_base/cms_com_www/upload/article/image/2019_3/8_27/c1h1jztajrk7.png In July 2019, most of the modified ethanol imported into China came from the United States, but the quantity was minimal, at only 3.554 kiloliters. http://yjyxxzx.xj-tianye.com/res_base/cms_com_www/upload/article/image/2019_3/8_27/4h1pjztak0zx.png In July 2019, the majority of domestically imported unmodified ethanol in China came from Pakistan, amounting to 14,135.723 thousand liters.