According to the Commodity Market Analysis System of Shengyi Society, from September 16th to 20th, the domestic ethanol price fell from 5925 yuan/ton to 5882 yuan/ton, with a price drop of 0.72% during the period and a year-on-year decline of 16.86%. The domestic ethanol market is running steadily but weakly, with downstream demand mainly for replenishment. The overall trading atmosphere is still acceptable, but the willingness to replenish is limited.

In terms of cost, domestic corn prices continue to be weak. Currently, the overall quotations of deep processing enterprises are continuously decreasing, and some enterprises have made multiple adjustments within a day, with a significant cumulative decrease. As the new grain market approaches, the market supply atmosphere is relatively relaxed, the mentality is not good, and the market price center is gradually declining.. 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; Sichuan Hongzhan equipment is operating stably; Fukang only has four production lines, and the main large factories have low production capacity. 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; The operating rate of ethyl acetate has rebounded. Short term ethanol demand is expected to be supported by favorable factors.

The future forecast shows a negative impact on the cost side, while there is still no clear sign of improvement in downstream demand. Business Society’s ethanol analyst predicts that the domestic ethanol market will remain weak in the short term.