Price trend

According to the Commodity Market Analysis System of SunSirs, from October 14th to 18th, the domestic ethyl alcohol price fell from 5,562 RMB/ton to 5,525 RMB/ton, with a price drop of 0.67% during the period and a year-on-year decline of 20.50%. The price of raw corn continued to decline, and the cost support for fermented corn ethyl alcohol had loosened. Affected by poor downstream demand, the company's shipments were slow, and the ethyl alcohol market quotation had declined.

Analysis review

On the cost side, corn prices remained volatile and weak, with an increase in new grain listings. Traders had not yet exhausted their supply of aged grains, and the overall market supply was loose. Some traders continued to slightly lower their prices for shipments, and the price of aged grains was gradually approaching that of new grains. The cost of ethyl alcohol lacked favorable support.

On the supply side, the supply in various regions of the market remained stable, with some factories experiencing short-term shutdowns and plans to restart. Coal quality factories were operating normally. There were hardly any favorable factors in the supply of ethyl alcohol.

On the demand side, Baijiu consumption support slightly improved; The purchase quantity of anhydrous methyl ethyl ester was stable; It is reported that the load of the Hunan unit had recovered, while the load of the Jiangsu Sopu unit had temporarily decreased, and there may be a decrease in operation. Ethyl alcohol demand is expected to have favorable factors for the market in the short term.

Market outlook

Downstream demand performance was average, and factories had a low willingness to sell at low prices. Ethyl alcohol analysts at SunSirs predict that the domestic ethyl alcohol market will be weaker in the short term.

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