According to the monitoring data of business associations, as of October 10, the average price of ethanol in the domestic market was 5,400 yuan/ton, which fell 0.37% in the same period last month and 3.76% in the same period last year. Domestic ethanol market is mainly stable, and some areas are strong.
II. Market Analysis
Products: The domestic ethanol market is steadily rising, the atmosphere of taking goods in the lower reaches of Shandong province is still acceptable, which supports the booming mood of liquor enterprises and the rise of waterless quotations of large factories; the supply in northern Jiangsu continues to be low, and driven by the surrounding rising trend, the focus of negotiations moves upward; the current market in central China is smooth, and some factories queue up to pick up goods, but Huaxing starts today, and subsequent supply is expected to increase and continue to rise. There is insufficient momentum; the price of corn purchases in Northeast China continues to decline, and liquor companies are watching the market cautiously.
Industry Chain: Corn: New grain in North China is on the market, corn in the near future is out of storage alternately, the supply of corn market is relatively sufficient, and spot quotation in Northeast China is further declining. But after the National Day holidays, deep processing enterprises in some areas have resumed production, and the rising start-up rate helps to stimulate the demand for maize. Overall, the fundamentals are tepid, but considering the end of the auction and the low level of inventory, potential profits support the price of maize.
Ethyl acetate: The domestic market atmosphere of ethyl acetate is general. The price of raw material acetic acid has been reduced in some areas, and the cost of raw material has a negative impact. At present, the supply and demand fundamentals in the field are generally supported, and shipments are still dominant in East China and North China. Affected by the abundant supply side, South China is declining. It is expected that the domestic ethyl acetate Market will be consolidated in the short term.
3. Future Market Forecast
Ethanol analysts at business associations predict that the domestic ethanol market or high-level consolidation in the short term will weaken in the long run as supply increases.