SunSirs: The Ethanol Market Was in a Stalemate and Consolidating

Price trend

According to the Commodity Market Analysis System of SunSirs, from April 21st to 25th, the domestic ethanol price remained at 5,230 RMB/ton, with a month on month decrease of 0.62% and a year-on-year decrease of 13.20%. Regardless of the factory's maintenance plan, the supply has decreased, and downstream stocking up before the holiday. As stocking approaching its end, market transactions have become sluggish, and ethanol prices remained stable due to low inventory pressure on enterprises.

Analysis review

In terms of cost, after an initial increase, some companies have seen an increase in the number of vehicles arriving, resulting in a narrow decrease in corn prices. However, there were also companies that had seen a narrow increase in prices, while mainstream prices remained stable. Grassroots purchasing and sales were relatively light, and some traders still sold at high prices. The impact of ethanol cost was mixed.

On the supply side, the 300,000 ton annual production facility of Heilongjiang Hongzhanlaha was undergone maintenance on April 8th; The 250,000 ton annual production facility in Meihekou Fukang was undergone maintenance in early April; Zhongke Green's 100,000 ton annual production facility was undergone maintenance in early April; Shandong Hengxin's 500,000 ton annual production facility shut down on April 13th. There were unlikely to be major favorable factors in the supply of ethanol.

On the demand side, downstream chemical rigid demand procurement had seen a slight weakening in transactions, with some regions experiencing a decrease in delivery prices and rigid demand transactions. The short-term demand for ethanol has a moderate impact.

Market outlook

There was a slight increase in demand, and the supply on site was stable. SunSirs' ethanol analyst predicts that the domestic ethanol market will consolidate and operate in the short term.

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