Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic ethyl alcohol market has been on a wait-and-see basis. From May 15th to May 19th, the domestic ethyl alcohol price dropped from 6,710 RMB/ton to 6,637 RMB/ton, with a price drop of 1.08% during the cycle, a month on month decrease of 5.40%, and a year-on-year decrease of 12.28%. Some factories recently recovered their equipment, and poor shipping conditions led prices to weaken. Under a bearish market mentality, downstream purchases were mainly on demand.

Analysis review

On the cost side, on May 19th, the benchmark price of corn for Shangshang Society was 2,677.14 RMB/ton, a decrease of 1.94% compared to the beginning of this month (2,730.00 RMB/ton). The market volume of corn in the Northeast production area continued to increase, and the supply of corn in the production area was relatively loose. The corn inventory of ports and downstream deep processing enterprises was relatively sufficient, and the overall corn production area had entered a stage of strong supply and weak demand. Corn prices continued to be weaker under continuous pressure. The cost side of ethyl alcohol was relatively bearish.

On the supply side, some units in northern Jiangsu had low load production, and the overall supply was stable. The Guannan device was shut down, the Jinchanglin device was shut down, and the Changxing and Maibohui devices in southern Jiangsu were turned on. The negative impact of ethyl alcohol supply side had increased.

On the demand side, the demand of chemical products was flat, and the overall chemical market was mainly at a loss. Maintained on-site rigid procurement, and there was a possibility of short-term maintenance of ethyl acetate. The demand offine chemical products was stable. The weather is gradually hot, the demand for Baijiu is gradually narrowing, and the short-term demand of ethyl alcohol will be negative.

Market outlook

Insufficient cost support and weak downstream demand, ethyl alcohol analysts from SunSirs predict that the domestic ethyl alcohol market will be sluggish in the short term.

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