Price trend

According to the Commodity Market Analysis System of SunSirs, from June 16th to 20th, the domestic ethanol price rose to 5,486 RMB/ton, with a price increase of 0.49% during the period, a month on month increase of 2.08%, and a year-on-year decrease of 9.25%. In some regions, raw material corn was supported by high prices, while some enterprises in the main production areas stopped production due to equipment maintenance. Ethanol production enterprises had a clear willingness to raise prices and were reluctant to sell at low prices, resulting in an increase in transaction prices.

Analysis review

In terms of cost, corn traders in the main production areas had a relatively optimistic attitude, with inventory at a relatively low level and prices relatively firm. The cost of ethanol was influenced by favorable factors.

On the supply side, the Wanli Runda edible equipment in Heilongjiang had shut down, while the Hongzhanlaha fuel and waterless equipment in Heilongjiang had shut down. Sichuan Hongzhan equipment started production. The supply of ethanol provided favorable factors.

On the demand side, from the demand side, downstream Baijiu and chemical products were entering the traditional slack season, the consumer side is expected to reduce slightly, and the transaction price of downstream chemical products is expected to rise. The short-term demand for ethanol was  favorable factors.

Market outlook

Cost benefits continued to support the high operation of ethanol prices. SunSirs’ ethanol analyst predicts that the domestic ethanol market will operate at a relatively high level in the short term.

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