According to the Commodity Market Analysis System of Shengyi Society, the domestic ethanol market was weakly consolidated in July. From July 1st to 30th, the average price of domestic ethanol producers dropped from 6052 yuan/ton to 6012 yuan/ton, with a price drop of 0.66% during the period and a year-on-year price drop of 9.59%.

In the first half of the month, supported by cost factors, the main factories raised prices and maintained stable quotes. However, as downstream demand declined, the domestic ethanol market weakened and consolidated. In mid month, some regions saw a tentative increase, but downstream purchases were mostly made on demand, with average transaction volume. Under high costs, most companies bear the pressure of losses and are unwilling to lower prices to place orders. Considering the current weak demand, the domestic ethanol market has only maintained a slight upward trend. In the latter half of the month, the majority of regions in China experienced sluggish procurement and sales, with some manufacturers undergoing maintenance and supply decreasing. Despite the impact of weak demand, the market did not follow suit. As the end of the month approaches, due to the suspension of some factory facilities and reduced inventory pressure, ethanol prices have slightly increased. The overall downstream purchasing is flat, demand remains sluggish, and trading volume is limited.

In terms of cost, in the first half of the month, the surplus grain at the grassroots level reached its bottom, and downstream procurement was carried out in stages, with a limited amount of imported grain powder. The corn market is operating at a high level. In mid month, the domestic corn market was running weakly. As the temperature gradually rises, traders are concerned about the storage of high moisture grain sources, and their enthusiasm for shipping has increased. In order to promote shipment, they will continue to reduce prices slightly. At the end of the month, with high temperatures and frequent rainfall in the production area, traders showed high enthusiasm for shipping, resulting in weak short-term fluctuations in corn prices. The cost of ethanol is influenced by bearish factors.

The cost of ethanol is influenced by bearish factors.

On the supply side, there are significant differences in the operating rates of production enterprises in different regions; The supply of ethanol is affected by favorable factors.

Demand side, Baijiu consumption off-season; Short term ethanol demand is influenced by bearish factors.

Market forecast: Negative impact on cost, sluggish demand leading to market shipment obstruction. The ethanol analyst from Shengyi Society predicts that the short-term domestic ethanol market will be mainly dominated by weak consolidation.