According to the Commodity Market Analysis System of Shengyi Society, the domestic ethanol market experienced narrow fluctuations in April. From April 1st to 28th, the average price of domestic ethanol producers first rose from 5236 yuan/ton and then fell to 5233 yuan/ton, with a price drop of 0.05% during the period and a maximum amplitude of 0.29%. The price fell by 13.14% year-on-year.

In the first half of the month, the price of edible ethanol market fluctuated weakly, and the inventory pressure on the supply side of the alcohol market was not significant. With the continuous strong operation of raw material corn prices, the cost loss was obvious. Poor support on the demand side, with rigid demand transactions being the main focus.
In mid month, the main factories shipped their preliminary orders, but the inventory of the enterprise was not high, resulting in significant cost pressure. The enterprise showed a clear willingness to raise prices, and the downstream demand for replenishment before the holiday supported the overall ethanol price to be relatively stable.
At the end of the month, some factories had maintenance plans, resulting in a decrease in supply. Downstream companies stocked up before the holiday, but as stocking approached its end, market transactions weakened and ethanol prices remained stable due to low inventory pressure on enterprises.
On the cost side, in the first half of the month, corn prices remained firm, and traders’ intention to sell at low prices was slightly average, resulting in low market purchasing and sales activity. In mid month, corn prices continued to fluctuate within the range. Traders’ shipments are relatively evenly distributed, while deep processing enterprises maintain a relatively balanced supply and usage of corn. At the end of the month, after an earlier increase, some companies saw an increase in the number of vehicles arriving, resulting in a narrow decrease in corn prices. However, there were also companies that saw a narrow increase in prices, while mainstream prices remained stable. Grassroots purchasing and sales are relatively light, and some traders still sell at high prices.
Supply side, stable operation of supply side. There are unlikely to be major favorable factors in the supply of ethanol.
On the demand side, downstream chemical rigid demand procurement has seen a slight weakening in transactions, with some regions experiencing a decrease in delivery prices and rigid demand transactions. The short-term demand for ethanol has a moderate impact.
Future forecast: Limited supply, partial orders shipped, downstream stocking nearing completion. Business Society’s ethanol analyst predicts that the domestic ethanol market will consolidate and operate in the short term.