Price Trend

According to the monitoring data of business associations, as of August 6, the average price of ethanol in the domestic market was 5380 yuan/ton, rising by 0.19% annually and falling by 1.36% year on year. The domestic ethanol market remained stable, with some areas falling.

II. Market Analysis

Products: The domestic alcohol market is relatively stable. Enterprises in Northeast China have low inventories, orders are shipped one after another, parking enterprises start construction one after another, and downstream enterprises basically maintain just in need of purchasing; Henan enterprises start construction relatively low, some enterprises stop installations, enterprise quotations rise, downstream demand is general; Dongcheng installations in East China stop short, individual enterprise installations open this week, downstream demand. Limited, the market remains stable; enterprises in South China are reluctant to sell at low prices, downstream maintenance just needed to purchase, Guangdong Leizhou Runtai device opened, quotation increased, the market remains stable.

Industry Chain: Corn: Affected by the increase of the cost of maize stock and transportation, the price of maize has been rising recently from the price level. But there is hardly any sign that changes in the supply and demand structure of maize itself are driving prices up. Influenced by the relatively loose supply caused by the weak growth of breeding demand, it is difficult for corn prices to rise at present. Generally speaking, we believe that the overall price of Maize in the near future will continue to be stable, but there is still a risk of callback (not affected by the province itself). It is expected that the market of maize will reverse after the middle and late August. The chances of turning bullish are higher. Ethyl acetate: The domestic market for ethyl acetate is stable. After a temporary stabilization after the fall, the downstream market of ethyl acetate continues to be bearish. The volume of transactions in East China and North China has increased, and orders are concentrated in low-end producers. Ethyl acetate Market in South China continued to be light, with local enterprises offering a small increase of 50 yuan/ton in the afternoon, intending to boost the enthusiasm of downstream acquisition, but the terminal demand is mainly rational, market turnover has not increased, traders are still mainly shipped.

3. Future Market Forecast

Enterprises in Northeast China have low inventories and are expected to maintain a stable short-term market supported by favorable supply side. In East China, Dongcheng has stopped short, and some enterprises have opened their devices this week. It is expected that the short-term market will remain in order and operation. Henan is expected to maintain a firm price supported by favorable supply side. Enterprises in South China are expected to keep firm quotations. Downstream to maintain just needed procurement, the short-term market is expected to remain stable. Ethanol analysts at business associations expect the domestic ethanol market to run smoothly in the short term.