China boosts ethanol import tax to 45%

In China, Reuters reports that the additional 15% tax added on to ethanol on Sunday, bringing the total import tariff to 45%, as part of retaliation for the US increasing import tariffs on steel will have immediate impacts on ethanol imports but analysts expect the country to have to return to foreign ethanol consumption at some point in the near future in order to achieve its blending mandate. Although domestic production is ramping up, meaning less foreign competition will be good for crush margins, even with additional capacity online it won’t be enough to achieve 10% in 2020.