SunSirs: The Ethanol Market Was Consolidated and Wait-and-See

Price trend

According to the Commodity Market Analysis System of SunSirs, from July 21st to 25th, the domestic ethanol price rose to 5698 RMB/ton, with a price increase of 0.53% during the period, a month on month increase of 1.31%, and a year-on-year decrease of 5.22%. The domestic ethanol market prices remained stable, with some factories experiencing price increased but no actual orders received. Downstream chemical demand procurement had resulted in a decrease in transaction prices.

Analysis review

In terms of cost, the upward trend of corn market prices slowed down, the market buying and selling atmosphere was light, and the downstream enthusiasm for purchasing feed corn was average, with rolling replenishment as the main focus. The cost of ethanol was bearish for the market.

On the supply side, there was little fluctuation in the production of edible ethanol. The Huanan plant in Heilongjiang Province produced it, and one line of Jixian produced it. Laha had resumed full production. The Bayan plant is expected to shut down on the 29th, while Wanli Runda's edible and fuel facilities had already shut down. Zhongke Green's production and Shenglong's plant had also shut down. The impact of ethanol supply was mixed.

On the demand side, downstream chemical delivery prices slightly decreased, and ethanol consumption had decreased. The demand side for ethanol will be bearish for the market.

Future outlook:

The supply side had increased and decreased, and the cost advantage had decreased. The ethanol analyst from SunSirs predicts that the short-term ethanol market trend will mainly focus on observation and consolidation.

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