Chinese ethanol imports to sink as economics shift margins for domestic production

In China, the country’s huge influx of ethanol imports that have soared 16-fold in 2015 should return to lower levels in 2016 to just 150 million liters compared to 440 million liters this year, as the government shifts towards a policy encouraging significant use of corn stocks. The USDA estimates corn stocks are currently at more than 23 million metric tons. Ethanol production has remained stagnant but will pick up thanks to higher subsidies and cheaper corn, improving crushing margins significantly.

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