According to the Commodity Market Analysis System of Business Society, the domestic ethanol market saw a narrow decline in February. From February 1st to 29th, the average price of domestic ethanol producers dropped from 6425 yuan/ton to 6287 yuan/ton, with a price drop of 2.14% during the cycle and a year-on-year decrease of 12.5%.

At the beginning of the month, as the Spring Festival holiday approaches, many traders have left the market, and there is not much change in the prices of production enterprises. At present, the demand is average, the cost support for ethanol is insufficient, and domestic ethanol prices are weak, resulting in slow shipments. During the Spring Festival in some regions, the equipment did not shut down and production was normal, with limited external sales. Prices continued to weaken after the Spring Festival, and the later snowfall weather affected the delivery speed. The domestic ethanol market continued to be weak.

On the cost side, corn prices bottomed out and rebounded in February. The impact of policies and snowfall in the north have led to a narrow increase in corn prices. Under the influence of policies, corn prices are expected to continue to rise in March. Further observation is needed to determine whether the increase in temperature will affect the progress of grain sales. The short-term cost of ethanol is influenced by favorable factors.

On the supply side, there was no adjustment observed during the ethanol maintenance in February, and production remained stable with slight adjustments within the region. After the Spring Festival, the main production areas have high inventory levels, with short-term release of inventory being the main focus. The supply side of ethanol is affected by bearish factors.

On the demand side, the focus of the ethyl acetate market declined in February, and the utilization rate of ethyl acetate production capacity decreased significantly. The demand for Baijiu has picked up due to the Spring Festival holiday. The short-term demand for ethanol is mixed.

Market forecast, cost bearish, with many ethyl acetate factories maintaining normal production in March. Short term recovery of large factory facilities. Baijiu just needs to be purchased. Ethanol analysts from Business Society predict that the domestic ethanol market may consolidate in the short term.