According to the commodity market analysis system of SunSirs, the domestic ethanol market rose unilaterally in May. From May 1 to 30, the average price of domestic ethanol producers rose from 5,233 RMB/ton to 5,438 RMB/ton, with a price increase of 3.93% during the period and a year-on-year price drop of 8.86%.

In early May, the equipment of enterprises in some regions continued to be inspected, the supply of ethanol was limited, the price of raw material corn was strong, the cost pressure was large, and the willingness of enterprises to maintain prices was obvious.

In mid-May, the ethanol market continued to rise, and the cost pressure of enterprises in some regions was large. Orders were shipped, the start-up was not high, and the inventory pressure was not large. The willingness to pull up was obvious, but the new order transaction was limited.

In late May, the domestic ethanol market price was high. The equipment of enterprises in Northeast China continued to be inspected, the start-up was not high, and the willingness of enterprises to maintain prices was obvious. In the short term without inventory pressure, the price may remain stable. The transaction situation in Henan is acceptable, and the price remains high.

On the cost side, corn prices were relatively strong in the first half of May, and the deep processing purchase price was also raised. The prices in the production areas have continued to rise recently, and traders have a slightly different mentality for shipping. Overall, there is not much corn surplus in the production areas, and the quotations are strong. Corn prices fluctuated in the second half of May. The arrival volume of deep-processed corn in Shandong and Hebei is acceptable, and the corn prices of some companies have been slightly reduced. The arrival of deep-processing enterprises in Henan is average, and the price has been raised. Before the wheat harvest, the grassroots grain points shipped and realized cash, but the overall supply pressure is not great. The cost side of ethanol is affected by favorable factors.

On the supply side, the 100,000-ton annual production unit of Jilin Dongfeng, the 120,000-ton annual production unit of Hebei Chengde Mountain Resort, the 300,000-ton annual production unit of Shandong Jinyimeng, and the 150,000-ton annual production unit of Jiangsu Dongcheng were shut down; the 300,000-ton annual production unit of Guotou Tieling, Guotou Hailun, and Guotou Jidong were shut down for maintenance; the 500,000-ton annual production unit of LiaoRMB Jufeng was shut down for a long time. Hongzhan Laha Line resumed feeding after a short stop. It is difficult for major positive factors to emerge on the ethanol supply side.

On the demand side, the demand for liquor does not fluctuate much, and some downstream chemical industries have rigid demand for replenishment. The short-term impact on ethanol demand is general.

Forecast for the future market, the supply is limited, some orders are shipped, and downstream stocking is nearing the end. Analysts at SunSirs predict that the domestic ethanol market will be strong and consolidated in the short term.

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