Price trend
According to the Commodity Market Analysis System of SunSirs, from May 1st to 9th after the holiday, the domestic ethanol price rose from 5,233 RMB/ton to 5,293 RMB/ton, with a price increase of 1.16%, a month on month increase of 1.10%, and a year-on-year decrease of 11.77%. In some regions, the equipment of enterprises continued to undergo rotation inspections, the supply of ethanol was limited, the price of raw material corn was strong, the cost pressure was high, and the willingness of enterprises to raise prices was obvious.
Analysis review
In terms of cost, corn prices were relatively firm, and the purchase prices for deep processing also increased. The prices in production areas continued to rise recently, and the shipping mentality of traders was slightly different. Overall, there was not much corn surplus in the production area, and the quotation wa firm. The cost of ethanol provided favorable factors for the market.
On the supply side, the 100,000 t/a plant in Dongfeng, Jilin, the 120,000 t/a plant in Chengde Mountain Resort, Hebei, the 300,000 t/a plant in Jinyimeng, Shandong, and the 150,000 t/a plant in Dongcheng, Jiangsu were shut down; Guotou Tieling, Guotou Hailun, and Guotou Jidong each produce 300,000 tons of equipment annually for shutdown and maintenance; Long term shutdown of the 500,000 ton annual production facility at Liaoyuan Jufeng. After a short stop, Hongzhanlaha resumed feeding. There are unlikely to be major favorable factors in the supply of ethanol.
On the demand side, from the demand side, the demand for Baijiu fluctuated little, and the downstream stock of chemical industry needed to be replenished. The short-term demand for ethanol has a average impact.
Market outlook
The high price of raw materials may have a high impact on the enterprise, but the demand is average. SunSirs’ ethanol analyst predicts that the domestic ethanol market will consolidate in the short term.
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