Price trend

According to the Commodity Market Analysis System of SunSirs, from April 14th to 18th, the domestic ethanol price fell from 5,245 RMB/ton to 5,238 RMB/ton, a decrease of 0.13% during the cycle and a year-on-year decrease of 12.15%. The main factories have shipped orders in the early stage, and the company's inventory was not high, resulting in significant cost pressure. The company had a clear willingness to raise prices, and there was a strong demand for replenishment before and after the holiday, which supported the overall ethanol price to remain relatively stable.

Analysis review

In terms of cost, corn prices continued to fluctuate within the range. Traders' shipments were relatively evenly distributed, while deep processing enterprises maintain a relatively balanced supply and usage of corn. The cost of ethanol had favorable factors for the market.

On the supply side, some companies had maintenance plans after May Day, restocking before the holiday, or maintaining stable prices. Regardless of the company, due to limited shipments during Labor Day, early inventory scheduling may also affect the trend of ethanol prices. There are unlikely to be major favorable factors in the supply of ethanol.

On the demand side, downstream chemical rigid demand procurement has seen a slight weakening in transactions, with some regions experiencing a decrease in delivery prices and rigid demand transactions. The short-term demand for ethanol has a moderate impact.

Market outlook

The inventory of production enterprises was not high, and there was significant cost pressure. The willingness of enterprises to raise prices was obvious, and there was a strong demand for replenishment before and after the holiday, which supported the overall price stability. SunSirs’ ethanol analyst predicts that the domestic ethanol market will consolidate and operate in the short term.

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