SunSirs: The Ethanol Market Experienced Slight Fluctuations

Price trend

According to the Commodity Market Analysis System of SunSirs, from April 7th to 11th, the domestic ethanol price rose from 5,262 RMB/ton to 5,270 RMB/ton, an increase of 0.14% during the cycle and a year-on-year decrease of 12.17%. The market price of edible ethanol fluctuated weakly, and there was not much inventory pressure on the supply side of the alcohol market. With the continuous strong operation of raw material corn prices, there was a significant cost loss. The support from the demand side was poor, with rigid demand transactions being the main focus.

Analysis review

In terms of cost, corn prices have remained firm, and traders' intention to sell at low prices was slightly average. The market's purchasing and sales activity was not high. The cost support for ethanol remained strong.

On the supply side, the supply side was running steadily, and some units in East China, Shandong, South China, and other regions were still in a shutdown state. The restart time was yet to be determined. There were unlikely to be major favorable factors in the supply of ethanol.

On the demand side, from the demand side, Baijiu consumption support was limited; The operating rates of downstream methyl ethyl carbonate and ethyl acetate did not change significantly, and their consumption of ethanol remained stable; Other downstream chemical industries were accompanied by regular procurement, with a focus on stocking up for essential needs, resulting in limited demand boost. The short-term demand for ethanol had an average impact.

Market outlook

There was not much inventory pressure on the supply side of the alcohol market, and with the continuous strong operation of raw material corn prices, there was a significant cost loss. Poor support on the demand side, with rigid demand transactions being the main focus. SunSirs' ethanol analyst predicts that the domestic ethanol market will consolidate and operate in the short term.

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