Price trend

The ethyl alcohol market in June 2020 was increasing all the way. According to the monitoring of SunSirs, the ethyl alcohol market price at the beginning of the month was 5,775 RMB/ton, and the domestic ethyl alcohol market price at the end of the month was 5,975 RMB/ton, an increase of 3.46% during the month. The price rose 11.39% year-on-year.

Analysis review

The domestic ethyl alcohol market fluctuated upwards this month, and the production enterprises remained strong due to the impact of the high upstream corn. The auction price of raw corn continued to rise to a high level, and the premium range was large. The price of the fifth corn auction fell under the influence of changes in rules and the increase in the amount of storage in the reserve. The drop was not large. The overall price remained high. The production cost of the company increased. Large factories continued to execute export orders this month, coupled with domestic downstream purchase orders, while large factory inventories basically remain low. Enterprise quotations have risen and then increased. At the same time, affected by the high price of raw materials, small factories were reluctant to sell at low prices and limited to sell.

In terms of logistics, the logistics price was stable this month, with the price of 200 RMB/ton from Jilin to Dezhou, Shandong, 320-350 RMB/ton from Heilongjiang to northern Jiangsu, 230-240 RMB/ton from Henan to Hubei, and 250 RMB/ton from Henan to Anhui. There was little change in shipping price.

In terms of raw materials, corn: the price part of the five temporary storage auctions has been implemented, with high price, large premium and high transaction rate. Ethyl alcohol enterprises actively purchased raw materials, and the delivery price was at a high level. The cost of ethyl alcohol enterprises was high. The price of ethyl alcohol in Northeast China is maintained high under the support of cost, inventory and orders.

Ethyl acetate: In June, the domestic ethyl acetate market showed a sharp upward trend, with an overall increase of 350-400 RMB/ton. At present, raw material ethyl alcohol continues to fluctuate at a high level in the short term, and the downstream demand of ethyl acetate is relatively stable. The rational purchase of high-priced ethyl acetate is mainly rational. The short-term cost of ethyl acetate will continue to be high under the pressure, and it need to see whether the raw material surface can continue to support in the later stage.

According to the price monitoring of SunSirs, in June 2020, there were 40 kinds of commodities in the chemical industry sector of the list of commodity price rise and fall, of which 18 commodities increased by more than 5%, accounting for 20% of the total number of commodities monitored in this sector; the top three commodities were hydrogen peroxide (32.19%), ethylene (24.98%) and sulfur (24.05%). There were a total of 43 commodities that fell sequentially, and 16 commodities that fell more than 5%, accounting for 17.8% of the monitored commodities in this sector. The top three products that fell were butadiene (-16.51%) and chloroform ( -13.04%), acetic anhydride (-12.50%). The average monthly increase or decrease was 0.97%.

Market outlook

Although there is national intervention in the price of corn for raw materials, the price will remain high under the influence of supply in the short term, and the production cost of enterprises will be high. The orders of large factories in July will continue to be implemented. The Jilin factory has an overhaul plan, but it is a round-robin inspection. SunSirs ethyl alcohol analysts predict that the domestic ethyl alcohol market is mainly within a narrow range.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.