SunSirs: Raw Material Prices Fell, Demand Was Weak, and the Domestic Ethyl Alcohol Market Continued to Be Sluggish

　　Price trend

　　The price of corn had limited fluctuations in the main producing areas, but the price of corn in Henan dropped significantly. The corn-source ethyl alcohol market continued to weaken due to weak demand. According to the sample data monitored by SunSirs, as of August 4, the domestic ethyl alcohol market price was 6,682 RMB/ton, the price fell by 3.85% month-on-month, and the price rose by 8.00% year-on-year.

　　Analysis review

　　The market for corn-source ethyl alcohol in Northeast China continued to weaken, cassava-source ethyl alcohol followed the adjustment slightly, and molasses-source ethyl alcohol prices were firm. Market transactions were weak, and downstream purchased on demand. The downstream demand momentum was insufficient, the operating rate of domestic ethyl acetate enterprises increased slightly, but the demand for liquor and other chemicals was still not high.

　　In terms of raw materials, the corn market in Jilin declined within a narrow range, the price of corn in Henan fell within a narrow range, and the price of dried cassava in Thailand was weak, with about 250-255 US dollars/ton FOB Thailand; the price of molasses was firm, and the mainstream transaction price of molasses was above 1,700 RMB/ton. On the downstream side, the domestic acetate market first declined and then rose. After the market weakened briefly, the rest of the time showed a slight upward trend.

　　Market outlook

　　The price of dried cassava weakened, and the price of corn was weakened. The downstream demand was weak, and the price was weakly adjusted. Ethyl alcohol analysts of SunSirs predict that in the short term, the domestic ethyl alcohol market may still weaken slightly.