Price trend

According to the SunSirs commodity market analysis system, domestic ethanol prices rose to 5,576 RMB/ton from September 12 to 19, a 0.33% increase over the previous period, a 1.19% decrease month-over-month, and a 5.20% decrease year-over-year. Declining costs, increased bargaining power in downstream markets, and high production capacity at ethanol plants had all contributed to the continued weakness in domestic ethanol market prices.

Analysis review

On the cost side, corn and cassava chips prices continued to decline, with new corn crops gradually arriving on the market, and prices are expected to weaken. Cassava chips prices were fluctuating downward, but the downward room is limited. Ethanol costs provided negative factors for the market.

In Northeast China, Hongzhan's Huanan plant was operating, and both lines were operating in Jixian. Laha was operating at full capacity, the Bayan and Wanli plants were operating, and fuel was normal. General-grade and anhydrous ethanol lines were shut down. Shenglong was operating, and the third and fourth lines at the Fukang plant in Jilin were shipping. The Yushu and Xintianlong plants were operating normally. Baiyecheng and Jietainuo plants in Inner Mongolia were operating normally. Three plants in Mengzhou, Henan were operating normally. The Huating plant in Jiangsu was operating at 50% capacity. The Qufeng plant in Shandong was operating. Some plants in Anhui were experiencing short-term recovery after experiencing unstable production. The impact on ethanol supply was mixed.

On the demand side, terminal demand was improving, with solvent and downstream demand operating loads increasing. Liquor factories may also see increased production, leading to increased ethanol consumption and increased demand for edible ethanol before the holidays. Ethanol demands provided favorable factors for the market.

Future outlook:

Costs were weak, and plant loads were high. Downstream demand for liquor and chemicals was improving, and consumption was showing signs of improvement. Ethanol analysts of SunSirs predict that the ethanol market will mainly be wait-and-see and consolidated in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.