According to the Commodity Market Analysis System of Shengyi Society, from December 2nd to 6th, the domestic ethanol price fell from 5437 yuan/ton to 5375 yuan/ton, a decrease of 1.15% during the cycle and a year-on-year decrease of 20.96%. The domestic ethanol market is weak and declining, with some areas affected by previous snowfall, logistics disruptions, and shipment pressure. In addition, there is abundant spot supply, and there is obvious pressure for enterprises to reduce inventory. At the same time, the demand side support is poor, with rigid demand procurement being the main factor, resulting in a decline in ethanol prices.

On the cost side, the price of raw material corn is fluctuating strongly, and the profit margin of fermented corn ethanol is narrowly declining; The profit margin of ethanol has been compressed.

On the supply side, the supply in various regions remains stable, and the operating load is gradually increasing. In some areas, there may be an increase in spot supply. There are hardly any favorable factors in the supply of ethanol.

On the demand side, Baijiu consumption support is acceptable; Methyl ethyl ester maintains stable purchasing volume for anhydrous materials; Ethyl acetate production has slightly rebounded according to reports. The short-term impact of ethanol demand is expected to break through.

The future forecast shows that there is significant inventory pressure on enterprises and limited support from the demand side. Ethanol analysts from Shengyi Society predict that there is still room for a short-term downturn in the domestic ethanol market.