China's ethanol demand remains strong

The US ethanol industry has been able to offset a tariff-induced drop in exports to China, with experts saying that China's burgeoning demand will ensure it remains a desirable market.

In 2016, China was the third-largest destination for US ethanol exports after Canada and Brazil. In 2017, it was the 11th-largest recipient following its imposition of a 30 percent tariff, according to Bruce Pickover, senior director of global biofuels at S&P Global Platts Analytics.

"As China's gasoline-vehicle fleet has grown, gasoline and ethanol demand has risen sharply, and the government has announced a target to utilize a 10 percent ethanol blend by 2020," Chad Hart, an economics professor at Iowa State University, wrote in an email.