According to the Commodity Market Analysis System of Shengyi Society, from September 23rd to 27th, the domestic ethanol price remained at 5802 yuan/ton, a year-on-year decrease of 18.42%. The price of raw corn continues to decline, with a slight loosening in costs. As the National Day approaches, holders are actively shipping, but demand has not substantially improved, resulting in a clear situation of oversupply in the market. The domestic ethanol market continues to be weak.

In terms of cost, the increase in corn production in the new season in the production area has led to a seasonal decline in corn. New grains are being launched one after another, but downstream demand is difficult to increase, leading to a strong bearish sentiment in the market and a synchronous decline in corn prices. The cost of ethanol lacks favorable support.

On the supply side, there are significant differences in the operating rates of production enterprises in different regions; The main large factories are not operating at a high rate. There have been no significant changes to the equipment in other factories. The ethanol supply is expected to be supported by favorable factors.

On the demand side, Baijiu consumption is generally supported; Methyl ethyl ester maintains stable purchasing volume for anhydrous materials; Ethyl acetate has heard that the Jinmao Source plant is planning to restart recently, and the operating rate has rebounded. Short term ethanol demand is expected to be supported by favorable factors.

In the future, with light demand and subsequent decline in corn prices, ethanol analysts from Shengyi Society predict that the domestic ethanol market will remain weak in the short term.