Price trend

According to the monitoring by SunSirs, the domestic ethyl alcohol market had weakened and declined. From March 17th to 24th, the domestic ethyl alcohol price fell from 7,142 RMB/ton to 7,038 RMB/ton, a decrease of 1.46% during the cycle, a month-on-month decrease of 1.19%, and a year-on-year decrease of 2.15%. Most production enterprises mainly focused on consolidation after the fall. Traders lowered their prices in order to deliver orders, with the price adjustment range of around 50-100 RMB/ton. However, downstream demand was weak, actual orders were insufficient, and the market atmosphere was more wait-and-see.

Analysis review

On the cost side, on March 24th, the benchmark price of corn for SunSirs was 2,782.86 RMB/ton, a decrease of 0.92% compared to the beginning of this month (2,808.57 RMB/ton). In the second half of March, China's aquaculture and feed production and processing market will continue to recover slowly, but overall, it will continue to be in the seasonal off-season stage, and the corn market is weaker. The cost side of ethyl alcohol was negative.

On the supply side, this week, the overall ethyl alcohol market started operating with stable load, and the main plant units operated at high load, supply increased. Some units in northern Jiangsu were under low load production, Guannan units were shut down, Jinchanglin units were shut down, and Changxing and Maibohui units in southern Jiangsu were started up. The negative impact of ethyl alcohol supply side increased.

On the demand side, the operating rate of ethyl acetate decreased slightly, the demand for Baijiu was weak, and the demand for fuel ethyl alcohol was stable. In the short term, ethyl alcohol demand is negative.

Market outlook

Cost support was insufficient, downstream was based on rigid demand. Ethyl alcohol analysts from SunSirs predict that the domestic ethyl alcohol market will run in a weak trend in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.