2022Domestic ethanol prices rose this year amid increasing industry pressure. The upward trend in ethanol prices was primarily driven by higher costs from rising raw material prices, including corn and cassava.2022Annual ethanol downstream consumption has declined, and the industry still needs to identify new demand growth drivers. Amid oversupply, ethanol profit margins remain persistently low, leading to accelerated capacity consolidation. With an increasing number of production processes, challenges are mounting, and future pressure persists.
2022The ethanol industry faces both opportunities and challenges this year. In the food and industrial ethanol sectors, cassava ethanol gained an early advantage in the first half of the year, followed by alternating development of grain-based and non-grain ethanol in the second half. The liquor industry continues to undergo adjustments, while anhydrous ethanol supply sees new changes, increasing market volatility. In the fuel ethanol sector, the industry stands at a crossroads. High international oil prices present opportunities for the bioenergy industry, but demand constraints combined with food security concerns pose significant challenges.
2023Over the past year, uncertainty in the ethanol industry has increased. In the food and industrial ethanol sectors, only a few companies have expansion plans, but market participants remain conservative regarding profit and price expectations. Currently, key feedstocks—corn and cassava chips—are showing varied historical patterns. New supply entering at the start of the year has demonstrated strong price resilience, particularly for cassava chips, whose prices have risen steadily, providing cost support for ethanol. In the fuel ethanol sector, potential entry of coal-based ethanol into gasoline blends may challenge fermentation ethanol costs; however, rising fuel ethanol consumption could present new opportunities for the industry.