SunSirs: The Ethyl Alcohol Market Was Stagnant

Price trend

According to the monitoring of the SunSirs, the domestic ethyl alcohol market was in a stalemate. From February 3 to February 10, the domestic ethyl alcohol price fell from 7,242 RMB/ton to 7,228 RMB/ton. The price fell 0.20% in the week, fell 2.10% month-on-month, and rose by 3.45% year-on-year.

Analysis review

The newly signed orders of manufacturing enterprises were flat, and the inventory had an upward trend. At the same time, some enterprises had resumed operations, and the supply had an upward trend. Downstream demand was hindered by high prices. In the short term, the ethyl alcohol market will mainly wait-and-see.

On the cost side, SunSirs monitored that the domestic corn price fell in a narrow range. On February 10, the benchmark price of corn in SunSirs was 2,820.00 RMB/ton, down 0.5% from the price at the beginning of this month (2,834.29 RMB/ton). The grain traders were wait-and-see, combined with the weather forecast, the short-term corn market price performance was stable, and failed to form a trend fluctuation.

On the supply side, the overall starting load of the ethyl alcohol market this week was stable, the main plant plants were operating at high load, the on-site supply was increased, and some of the plants in northern Jiangsu were produced at low load, but the overall on-site supply was stable, the Guannan plant was shut down, the Jinchanglin plant was shut down, and the Changxing and Maibo plants in southern Jiangsu were opened. The supply of ethyl alcohol had not changed much.

On the demand side, the chemical procurement in February is likely to increase. After the economy recovers gradually, the consumption of Baijiu and food is expected to increase. The fuel demand will maintain a good demand in the short term.

Market outlook

The cost support is insufficient, and the downstream purchased just on rigid demand. Ethyl alcohol analysts of SunSirs expect that the domestic ethyl alcohol market will be sorted and operated in the short term.

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