Zhang Jianbo, a CGCC analyst, said China became a net importer of corn for the first time in the first half of the year. He said corn imports outweighed exports by 78 million tonnes. “The average corn price in July in northeastern China surged 15.7 percent year on year to 1,845 yuan per tonne,” Zhang said, adding that livestock breeders cannot afford the high prices.
“These projects pose a great risk for grain supply in China,” he added. Zhao said China’s annual 10 million tonnes of ethanol fuel production could potentially consume 30 million tonnes of corn per year. In an interview with the Shanghai Securities Journal in July, Zhao said production costs for one tonne of ethanol range between 8,000 yuan and 9,000 yuan, adding the same amount of money could buy two tonnes of refined oil.
He suggested using other materials, such as cassava and wheat straw, to produce ethanol. Zhao told Xinhua Tuesday in a telephone interview the proposal was presented to the State Council in June and is at present being reviewed by the National Development
and Reform Commission, China’s top economic planner.and Reform Commission, China’s top economic planner.
Source: CITIC Newedge, 11.08.2010 Mr. Liang Haisan
Filed under: China, Energy & Environment, News, Risk Management, Agriculture, Alternative Energy Markets, China 中国, Commodities, Energy, Ethanol, Investment, Risk Management
