SunSirs: The Ethyl Alcohol Market Was Experiencing a Significant Decline
December 26 2024 14:33:41 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, from December 18th to 25th, the domestic Ethyl alcohol price fell from 5,250 RMB/ton to 5,105 RMB/ton, a decrease of 2.76% during the cycle and a year-on-year decrease of 24.79%. The price of Ethyl alcohol in the domestic market had dropped significantly, with high supply and average downstream gas purchasing, causing manufacturers to continuously lower prices.
Analysis review
On the cost side, the market price of raw material corn was weak and falling, and the inventory of southern ports was rising. There was a lot of storage pressure, and the ports were still receiving goods one after another. Traders had a high enthusiasm for shipping, maintaining high quotes and low prices, and there was a lot of bargaining space. Recently, downstream procurement enthusiasm had been low, port transactions had been limited, and the rise in futures prices had been weak. Traders had generally lowered their quotes by 10-20 RMB/ton. The cost of Ethyl alcohol was influenced by bearish factors.
On the supply side, the supply in various regions remained stable with small fluctuations. The Fukang Fourth Line, Heilongjiang Shenglong, and Dongfeng Hualiang facilities had resumed production, and the operating load was gradually increasing. Some areas may see an increase in spot supply. There are hardly any favorable factors in the supply of Ethyl alcohol.
On the demand side, Baijiu consumption support was acceptable; Methyl ethyl ester maintained stable purchasing volume for anhydrous materials; EA was rumored to be operating at a high level. The short-term impact of Ethyl alcohol demand is expected to break through.
Market outlook
The spot supply was abundant, the terminal Baijiu consumption had little change, and the demand side support was limited. The Ethyl alcohol analyst from SunSirs predicts that the short-term domestic Ethyl alcohol market will mainly be weaker.
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