Price trend

According to the Commodity Market Analysis System of SunSirs, from July 6th to 11th, the domestic ethanol price rose to 5,661 RMB/ton, with a price increase of 0.08% during the period, a month on month increase of 3.74%, and a year-on-year decrease of 6.28%. Cost support weakened, supply side equipment was about to recover, downstream demand had not changed significantly, and the ethanol market was digesting the increase.

Analysis review

In terms of cost, the overall corn price was still weak, the market atmosphere was weak, and spot prices continued to decline. The cost of ethanol provided negative factors for the ethanol market.

On the supply side, there was not much fluctuation in the production of edible ethanol, but the plant in Fukang, Jilin had shut down, inventory sales had increased, and factory quotations had risen. Heilongjiang Hongzhan's quotation was stable, with production at the Huanan plant and production on the Jixian and Laha lines. Wanli Runda's food and fuel production had been shut down, while Zhongke Green's feeding production had low new production quotations and limited high-level transactions. The impact of ethanol supply was mixed.

On the demand side, downstream chemical companies in Shanghai and Zhejiang saw a slight decrease in delivery prices for essential purchases. Ethanol prices in Shandong region fluctuated narrowly, with some factories experiencing initial increases followed by subsequent increases. Short term ethanol demand provided bearish factors for the market.

Market outlook

Recently, there has been equipment restoration on the supply side to supplement some of the supply gap. There has been no improvement in demand. Ethanol analysts from SunSirs predict that due to the supply-demand game, short-term prices may weaken narrowly.

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