Price Trend

The domestic ethanol market rose and fell unevenly this week. According to the monitoring data of business associations, the domestic ethanol market price at the beginning of the week was 5370 yuan/ton, which was 1.45% lower than the same period last year.

II. Market Analysis

Products: This week, the alcohol market has gone up and down differently. East China and Central China downward. Large factories in Northeast China mostly enter the inspection and repair, enterprises mostly take turns to repair, enterprise inventory is still acceptable, enterprise quotation performance is firm, downstream centralized procurement is basically over. Henan Province suffered from the impact of low-price goods in Northeast China, the price fell slightly; Sichuan enterprises quoted stable prices, large factories had maintenance plans at the end of the month, and short-term market prices remained firm; East China also suffered from the impact of low-price goods in Northeast China, the price of cassava continued to rise, enterprises in East China continued to reduce construction, and Su. With the passage of time, the amount of raw molasses in South China continues to decrease, enterprises are unwilling to sell low-end prices slightly increase, water-free sales in North China is still acceptable, and the Northeast general-grade supply will soon enter South China.

Industry chain: Upstream, the average weekly price of Maize in Jilin region of Northeast China closed at 1730 yuan/ton, down 0.28% from last week’s price. The price of dried cassava chips in upstream Thailand keeps rising, mainly due to the current season of fresh cassava production. Cassava enters the starch market more and dried chips export less. Up to now, FOB 235-240 US dollars/ton, theoretical port price in eastern China is 1900-1920 yuan/ton. Domestic enterprises are affected by weak downstream demand. Parking to avoid the market, raw material procurement is not good. Downstream, the price of ethyl acetate in East China rose by 2.62% on Thursday, 5,215 yuan per ton, compared with last week.

3. Future Market Forecast

Since this week, Northeast big factories have stepped into overhaul one after another. Supply reduction has boosted the market or reflected in the next week’s market. However, considering the current inventory situation and demand situation of liquor enterprises, there is little room for short-term pull-up operation, and the market is expected to remain stable. Under summer weather, terminal chemical enterprises are insufficient to enter the market, liquor is also in the off-season of sales, the demand for ethanol shows a downward trend, affecting the bidding sentiment of the operators. Ethanol analysts at business associations expect the domestic ethanol market to remain stable in the short term.