Price Trend

The domestic ethanol market rose and fell unevenly this week. According to the monitoring data of business associations, the price of domestic ethanol market at the beginning of the week was 5380 yuan/ton, rising by 0.19% annually, and falling by 3.45% compared with the same period last year.

II. Market Analysis

Products: This week, some markets in the alcohol market have seen mixed ups and downs. Fukang plant in northeastern Jilin area started construction, the quotation of enterprises was stable, the mentality of individual small factories was positive, the low-end price went down, the price of Heilongjiang area remained stable, and the freight price was higher; the general level in eastern China was slightly weaker, the enterprises started less under the pressure of cost, and the downstream consumed more Northeast supply; Henan area was thick. Source equipment parking continued, quotation remained firm, low-end market prices slightly rebounded; South China enterprises are currently only in Xintiande, Guangxi Zhongliang, Haiying, other basic equipment parking, liquor purchasing light, part of the goods to Yunnan or Guangdong, anhydrous gold source inventory is not high, profitable from supply side. With good support, prices went up and Xintiande prices went up. There was no water coming to Hong Kong from other places. Production enterprises in Guangdong made high offers. There were low-end prices in the market, and the supply was not much.

Industry chain: In the upstream, the average weekly price of Maize in Jilin region of Northeast China closed at 1740 yuan/ton, which was stable compared with last week’s price. The price of dried cassava chips in upstream Thailand remained stable, mainly due to the current season of fresh cassava production. Cassava entered the starch market more and dried chips exported less. Up to now, FOB 235-240 US dollars/ton, theoretical port price of East China 1900-1920 yuan/ton, and domestic East China purchased goods from Northeast China and sold them. Enterprises have more inventories and less start-up. The exchange rate of RMB has broken 7 short of domestic imports. Downstream, Ethyl acetate in East China was 5700 yuan/ton on Thursday, up 1.79% from last week’s price.

3. Future Market Forecast

Enterprise equipment in Northeast China is gradually normal, Dongfeng plant is expected to open in a short time, supply recovery, a small number of orders continue to carry out, downstream demand needs to pay attention to the downstream chemical purchasing situation, liquor purchasing is not warming up at present, the short-term market is expected to remain small consolidation; Henan thick-source plant is unstable, It is expected that the short-term market will remain stable, the construction situation in East China will not improve in the short term, the downstream will consume more Northeast supply, the start-up load of enterprises will not be high, and the loss will continue; the supply and demand in South China will be weak, liquor purchasing is not obvious, there will be no water supply in other places, and the supply of gold will continue to decrease. It is expected that Guangdong will have a high level in the short term. Likewise, Guangxi remains stable. Ethanol analysts at business associations expect the domestic ethanol market to remain stable and small in the short term.