According to the Commodity Market Analysis System of Business Society, from December 15th to 22nd, the domestic ethanol price remained at 6800 yuan/ton, with a month on month increase of 0.37% and a year-on-year decrease of 7.53%. At present, the supply and demand of the domestic ethanol market are weak and horizontal, with some regions experiencing recovery of equipment and average demand. In the short term, the domestic ethanol market is mainly weak and consolidating.

On the cost side, as we enter mid December, the market volume of corn in the production areas continues to increase, and the weak corn prices have led to an increase in the intention of grain trading entities to liquidate their exports. In addition, the new season of corn production has once again increased, and the domestic corn market supply has become more relaxed. Ports and deep processing corn inventories are relatively sufficient. Downstream trading entities have a strong wait-and-see attitude, and feed demand continues to be weak. Under the pressure of strong market supply and weak demand, The domestic corn market prices continue to be weak. The cost side of ethanol is influenced by bearish factors.

On the supply side, there is a significant difference in the operating rates of production enterprises in different regions, with 38.54% operating in East China and 91.04% operating in Northeast China; The operating rate in South China and Southwest China is 19.65%; Short term domestic ethanol production and stable food supply in Northeast China. There is sufficient ethanol supply in the East China region. Coal based ethanol supply is stable. The supply side of ethanol is affected by bearish factors.

On the demand side, most ethyl acetate factories maintain normal production status. The ethyl acetate project in Anhui region is awaiting production. Baijiu just needs to be purchased. The short-term demand for ethanol is mixed.

In the future market forecast, the cost is bearish, and the transportation and delivery situation between regions in terms of supply and demand are greatly affected by weather factors. Ethanol analysts from Business Society predict that the short-term domestic ethanol market situation may be dominated by weak consolidation.