Price trend

According to the Commodity Market Analysis System of SunSirs, from January 2nd to 10th, the domestic ethyl alcohol price rose from 5,157 RMB/ton to 5,200 RMB/ton, an increase of 0.82% during the cycle and a year-on-year decrease of 20.76%. In January, with the approaching of the Spring Festival, the terminal Baijiu factory started the pre festival stocking mode; Recently, the downstream chemical industry has also entered the pre holiday stocking stage. Boosted by favorable demand, the domestic ethyl alcohol market has stopped falling and rebounded.

Analysis review

On the cost side, the boost on the cost side was limited, and the lack of sustained upward driving force for raw materials cassava and corn. The cost of ethyl alcohol was influenced by bearish factors.

On the supply side, the supply in various regions remained stable, and the prolonged shutdown of Yushen equipment provided some positive support for the market. However, the supply of edible ethyl alcohol equipment nationwide remained relatively stable, with stable consolidation of spot goods. There are unlikely to be major favorable factors in the supply of ethyl alcohol.

On the demand side, downstream liquor companies' New Year's Day has boosted market confidence in multiple dimensions. With the approaching Spring Festival holiday, new consumer demand has been released from terminals, and downstream manufacturers' purchasing enthusiasm has been greatly boosted, driving a better trading atmosphere in the raw material ethyl alcohol market. The short-term impact of ethyl alcohol demand is expected to break through.

Market outlook

From the overall supply side, the spot supply of ethyl alcohol in the national ethyl alcohol market is relatively loose; From a demand perspective, the Spring Festival travel rush will start in January, logistics will gradually take a break, and downstream stocking may have entered the final stage. SunSirs' ethyl alcohol analyst predicts that the domestic ethyl alcohol market will consolidate and operate in the short term.

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