Arbitrage window to China opens up despite 30% import duty

In New York state, with ethanol prices at a one-year low, an arbitrage window to China has opened up. Even with the 30% import duty on ethanol, domestic prices in China are more than $300 per metric ton more expensive than US ethanol. With the import duty included, US ethanol is running at a $57-73/ton discount to Chinese supplies, which led to an offer for 30,000 tons for November shipment. Between January and August, since the import duty has been in place, ethanol imports have been at slightly more than 4,000 cubic meters.