Price trend
According to the Commodity Market Analysis System of SunSirs, from September 2nd to 6th, the domestic ethyl alcohol price fell from 5,965 RMB/ton to 5,945 RMB/ton, with a price drop of 0.34% during the period and a year-on-year decline of 12.89%. The downstream demand side continued to be sluggish, with poor buying enthusiasm and light trading, resulting in a narrow decline in the domestic ethyl alcohol market.
Analysis review
In terms of cost, the domestic corn market prices had been adjusted weakly, and some areas had harvested and launched new grains with water bubbles ahead of schedule. The grassroots price support sentiment was not strong, and the prices were low. Although the domestic corn market prices had fallen, the cost of ethyl alcohol production enterprises was still under pressure. The cost of ethyl alcohol lacked favorable support.
On the supply side, there were significant differences in the operating rates of production enterprises in different regions; Fukang and Hongzhan prices had risen, Wanli Runda was holding back on sales, and Jilin shipments had slightly improved; The second line equipment in Fukang had shut down, resulting in a slight decrease in domestic ethyl alcohol spot supply. There had been no significant changes to the equipment in other factories. The ethyl alcohol supply was expected to be supported by favorable factors.
On the demand side, the off-season of Baijiu consumption continued and orders were postponed; Methyl ethyl ester maintained stable purchasing volume for anhydrous materials; Individual units of ethyl acetate were planned to restart, and the operating rate had slightly increased. Short-term ethyl alcohol demand is expected to have some favorable factors.
Market outlook
The negative impact on the cost side, coupled with the abundant supply in the market, had led to significant overall shipping pressure. Ethyl alcohol analysts from SunSirs predict that domestic ethyl alcohol prices will remain stable with a weaker trend in the short term.
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