SunSirs: The Upward Trend of Ethyl Alcohol Market Slowed down

Price trend

According to the Commodity Market Analysis System of SunSirs, from March 3rd to 7th, the domestic ethyl alcohol price rose from 5,300 RMB/ton to 5,307 RMB/ton, an increase of 0.14% during the cycle and a year-on-year decrease of 15.92%. The price of edible ethyl alcohol in the domestic market was stable with some increase, but the upward trend has slowed down. The price of raw material corn continued to operate strongly, and the production cost of corn ethyl alcohol was under pressure. Holders had a strong mentality of supporting prices and a strong focus.

Analysis review

In terms of cost, the price of raw material corn was stable but slightly stronger, and the cost side has provided some support for alcohol prices. With the boost of favorable costs, enterprises had a strong mentality of supporting prices. The cost support of ethyl alcohol was still acceptable.

On the supply side, Shandong Qufeng Factory has resumed shipments, and the overall spot supply on the supply side was abundant. There were unlikely to be major favorable factors in the supply of ethyl alcohol.

On the demand side, from the demand side, Baijiu consumption support was flat; The operating rates of downstream methyl ethyl carbonate and ethyl acetate do not change significantly, and their consumption of ethyl alcohol remained stable; Other downstream chemical industries were accompanied by regular procurement, with a focus on stocking up for essential needs, resulting in limited demand boost. The short-term impact of ethyl alcohol demand is expected to break through.

Market outlook

The overall spot pressure on the supply side of the alcohol market was not high, and the price of raw material corn was fluctuating and consolidating. Cost support still exists, and the mentality of production enterprises has been boosted. The demand side has limited follow-up, with rigid demand transactions being the main focus and spot trading being flat. SunSirs’ ethyl alcohol analyst predicts that the domestic ethyl alcohol market will consolidate and operate in the short term.

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