The Domestic Ethanol Market is not Supportive Enough, and the Price is Weak

In the last month of 2023, both the domestic ethanol and fuel ethanol markets weakened. Supply is relatively sufficient, demand is not high, and prices continue to weaken.

In December, the price of corn ethanol in the domestic ethanol market in Northeast China continued to weaken after a slight increase in the early stage. This month, the fuel demand in Northeast China weakened, and production loss-making enterprises adjusted their output, and their edible output increased. Due to the impact of the delay in the shipping schedule in November, the cargo was concentrated in December, the company actively prepared for the port, and the snowfall in the Northeast decreased in December, and the price of the first half of the month was slightly higher supported by the active delivery of orders in the early stage, and the freight rate continued to be high in the later period, and the execution of the previous order was completed, the equipment of the large methyl ethyl carbonate plant continued to shut down, the sudden time device of the large acetate plant was short-lived, and the production and shutdown of the equipment of the ethylamine in the East China plant were reduced, and the demand declined. The price of corn on the cost side weakened, which was bearish for the price trend of ethanol. At the end of the month, freight rates began to fall slightly, the supply in the Northeast was sufficient, and the prices continued to weaken under the limited downstream demand. Ethanol prices for fermentation fuels fluctuated in a narrow range in December. This month, the fuel output of some enterprises declined, but the terminal demand is not high, the early stage of the implementation of the main orders, the price performance is firm, and the freight rate continues to be high, resulting in the price to continue to remain high, reaching 6900 yuan / ton at a region, as the refinery began to press, the enterprise large order implementation of the later stage, the price began to weaken continues, the end of the month to the end of the month of the enterprise quotation began to weaken. At the end of the month, the main business began to purchase, and after the large manufacturers signed orders, the price of fuel increased. In terms of coal ethanol, the device basically remained normal, and individual shutdown enterprises continued to shut down, and the price performance in the early stage was stable, but the shipment mentality was positive in the later stage, and the price declined rapidly. Later this month, Baling Petrochemical has released caprolactam by-product ethanol products. In December, Henan corn ethanol was stable, the early orders were shipped, the price trend was stable, and the snowfall affected the delivery, but the company's delivery resumed after the snowfall stopped. Around the middle of the month, the equipment of 2 factories in Mengzhou was unexpectedly shut down, the inventory of the enterprise was low, the price was stable, and the demand for liquor rebounded slightly in the later period, and the equipment of the enterprise was unstable, the order was shipped, and the price continued to remain stable. At the end of the month, Henan devices resumed shipments, and prices continued to weaken. In December, the price of cassava ethanol in East China rose first and then fell. This month, the start of cassava ethanol in East China was not high, the main factory equipment was shut down across the board, and the consumption of foreign goods this month was the mainstay, and the quotation of enterprises remained firm. First of all, the price of enterprises in southern Jiangsu is firm, and then the arrival of goods at the port is obvious, the shipment mentality is positive, and the general output of a large factory in Anhui has increased to a high level, and the advantages of chemical orders are obvious, and the market price has begun to weaken. The chemical ethyl acetate plant stopped for a short time due to the sudden accident at the end of the month, and the ethylamine plant was not operating high, and the overall consumption declined. In December, the overall supply of Guangxi market was sufficient, some factories switched to corn ethanol, and the output of cassava ethanol decreased in the month, but the start-up of molasses ethanol in Guangxi increased, production enterprises shipped positively, and the downstream stocking demand was lower than expected, and the market was weak. Dongguan corn ethanol supplement is stable, and the price is running weakly with the market.