According to the Commodity Market Analysis System of Shengyi Society, from September 2nd to 6th, the domestic ethanol price fell from 5965 yuan/ton to 5945 yuan/ton, with a price drop of 0.34% during the period and a year-on-year decline of 12.89%. The downstream demand side continues to be sluggish, with poor buying enthusiasm and light trading, resulting in a narrow decline in the domestic ethanol market.

In terms of cost, the domestic corn market prices have been adjusted weakly, and some areas have harvested and launched new grains with water bubbles ahead of schedule. The grassroots price support sentiment is not strong, and the prices are low. Although the domestic corn market prices have fallen, the cost of ethanol production enterprises is still under pressure. The cost of ethanol lacks favorable support.

On the supply side, there are significant differences in the operating rates of production enterprises in different regions; Domestic ethanol spot supply has slightly decreased. There have been no significant changes to the equipment in other factories. The ethanol supply is expected to be supported by favorable factors.

On the demand side, the off-season of Baijiu consumption continues and orders are postponed; Methyl ethyl ester maintains stable purchasing volume for anhydrous materials; Individual units of ethyl acetate are planned to restart, and the operating rate has slightly increased. Short term ethanol demand is expected to be supported by favorable factors.

In the future market forecast, the negative impact of cost is expected, while the market supply remains abundant, resulting in overall shipping pressure. Ethanol analysts from Shengyi Society predict that domestic ethanol prices will remain stable with a weak trend in the short term.