Price trend

According to the Commodity Market Analysis System of SunSirs, the focus of the domestic ethyl alcohol market continued to rise. From August 7th to 15th, the domestic ethyl alcohol price increased from 6,687 RMB/ton to 6,750 RMB/ton, with a weekly price increase of 0.93%. The price remained stable month on month and decreased by 0.18% year-on-year.

There were slight differences between regions in the domestic ethyl alcohol market, with different periods of increase. Henan region had a large number of orders, inventory had decreased, and companies had maintenance plans. Under the influence of favorable factors such as a significant increase in corn prices, the price increased significantly. Large factories in Northeast Heilongjiang had limited shipments of food grade ethyl alcohol, resulting in a slight increase in prices.

Analysis review

On the cost side, due to the recent typhoon causing heavy rainfall in the north, the expected high yield of domestic corn had decreased. In addition, it would still take some time for the new season corn to go public, and the domestic corn market was gradually running out of high-quality and tradable grain sources. The domestic corn market was relatively stronger. On August 15th, the benchmark price of corn in SunSirs was 2,801.43 RMB/ton. There were temporary positive factors in the cost of ethyl alcohol.

On the supply side, the Fukang device was shut down and the Tianyu device would be resumed in mid August; Zhaodong Food grade ethyl alcohol resumed around August 15th, but production was limited. Longhe and Romet had plans to start production after the raw materials arrive at the port in mid August. Henan Houyuan Devices had a maintenance plan. The ethyl alcohol supply was mixed.

On the demand side, downstream chemical companies procurement was mainly in needed, and large ethyl acetate factories were gradually returning to full capacity. Some factories in East China had maintenance plans at the end of August. The short-term demand for ethyl alcohol was mixed.

Market outlook

Cost and supply supports are high, and demand is expected to break through. Ethyl alcohol analysts from SunSirs predict that the domestic ethyl alcohol market may experience stronger fluctuations in the short term.

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