In July 2020, the market price of ethanol is still on the rise. According to the monitoring of business agency, the market price of ethanol at the beginning of the month is 6000 yuan / ton, and that at the end of the month is 6212 yuan / ton, with an increase of 3.54% during the month and a rise of 15.47% compared with the same period last year.

This month, the ethanol market is still showing an upward trend. From the perspective of raw materials, the four national temporary storage corn auctions this month were all completed with 100%, and the corn auction price was high. Supported by the favorable raw materials of corn, corn ethanol market rose in shock. The corn ethanol market in Northeast China is strong, and the production enterprises have been shut down for maintenance. This month, Tianyu overhauled and Hongzhan two production lines took turns to overhaul. Tianyu is still in the process of maintenance and shutdown. Fukang plant is shut down, and the price of xintianlong has been raised. The enterprise has a shutdown plan in August. The ethanol market in Shandong Province is in a high level, and the enterprise quotation is stable, and the downstream just needs to purchase; the corn ethanol market in Anhui Province is up, the enterprise quotation is rising, and the enterprise orders are shipping; the ethanol market in Henan Province is rising, affected by the environmental protection, the production enterprises in Mengzhou region shut down, and the enterprise quotation is high.

In terms of logistics, the logistics price was stable this month, with the price of 220-240 yuan / ton delivered from Heilongjiang to Dezhou, Shandong, 230-240 yuan / ton from Henan to Hubei, and 250 yuan / ton from Henan to Anhui. There is little change in shipping price.

In terms of raw materials, corn: as of July 31, corn prices in some regions rose, while corn prices in Huanghuai region in North China remained stable. In the near future, the arrival of corn in Beigang has obviously recovered, mainly in the railway Piji port. The auction premium has not decreased, and the corn price in Beigang is supported. At present, traders are supporting the price, and it is predicted that the corn spot price will be stable in the near future. Impact on ethanol industry: in the 10th round of auction, corn price remained high, production pressure of enterprises continued, overhaul of large factories continued, inventory was low, and price remained high.

Ethyl acetate: in July, the domestic ethyl acetate Market in East China and North China became stable after falling, while the South China market fluctuated and rose. At the beginning of the month, the raw materials of acetic acid and ethanol were strong, and the cost side gave strong support to ethyl acetate, and the supplier’s offer followed the trend slightly. However, after Anhui Ruibai ethyl acetate plant was put into operation, the situation of oversupply in the market was aggravated. However, the raw material level remained high and the suppliers of ethyl acetate passively strengthened their offer. After the middle of the month, the market continued to be deadlocked. The mainstream manufacturers took the lead in competing for shipment at a lower price, which pushed down the transaction prices in the East and North China markets. Under the sales pressure of surrounding manufacturers, they were forced to make a loss and reduce the price of goods.

According to the price monitoring of the business agency, in July 2020, there were 32 kinds of commodities in the chemical industry sector that rose on a month on month basis, of which 15 commodities increased by more than 5%, accounting for 16.7% of the total number of commodities monitored in the plate. The top three commodities that increased were sulfuric acid (42.50%), butadiene (29.83%) and propane (14.43%). There were 43 kinds of commodities with a decrease of more than 5%, accounting for 18.9% of the total number of monitored commodities in the sector; the top three products were acetone (- 38.02%), phenol (- 19.93%) and isopropanol (- 18.75%). This month, the average rise and fall was – 0.47%.

The 10th auction price of raw corn continued to rise, the production pressure of enterprises continued to increase, the pressure of funds increased, the market heard that there will be rice into the market, which will ease the use of feed grain. At present, the overhaul of large factories continues, xintianlong will start maintenance on August 3, and Hongzhan maintenance will continue. After the environmental protection inspection in Henan area is qualified, the devices will be opened one after another, and corn in Henan has not yet been put on Some of them need to be purchased from Northeast China with high production costs, and it is expected that the market will be high in the short term. Business agency ethanol analysts predict that the short-term domestic ethanol market prices will be high.