Price trend

According to the Commodity Market Analysis System of SunSirs, from June 23 to 27, the domestic ethanol price rose to 5,512 RMB/ton, with a price increase of 3.63% during the period, a month on month increase of 5.40%, and a year-on-year decrease of 5.70%. The price of raw corn has risen, and production enterprises have shown a clear willingness to raise prices. They were reluctant to sell at low prices, and ethanol prices have continued to rise. Traders' shipping prices have also increased synchronously.

Analysis review

In terms of cost, corn prices in the main production areas continued to show a stronger trend. Recently, there has been more rainy weather in North China, and the arrival volume of deep processing goods in Shandong has remained low. There were less than 100 vehicles arriving in the morning, and the price of corn for enterprises has generally increased by 10-20 RMB/ton. The cost of ethanol is favorable factors.

Supply side, market supply side declined, Hongzhan Jixian stopped production, and Zhongke Green resumed production, but the output was limited. Guangxi COFCO had a shutdown plan but the timing had not been determined. The supply of ethanol is favorable factors.

On the demand side, from the demand side, the downstream Baijiu and chemical industry were entering the traditional off-season, the consumer side is expected to reduce slightly, and the downstream chemical industry delivery price will rise. The short-term demand for ethanol is 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 continue to operate at a high level in the short term.

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