The edible ethanol market ushered in a slight increase

In the first half of 2023, China's ethanol market showed a continuous decline, and the ethanol market, which had been silent for half a year, ushered in a price increase in the region. The sound of price increases began to flash on the eve of the Dragon Boat Festival, and the sound of price increases was strong after the festival. Regardless of whether the price increase can be sustained, judging from the company's quotations, it is certain that it has increased, and the market mentality has changed slightly.

Cassava ethanol in East China has increased by 50 yuan/ton, and low-end prices have disappeared. Due to the low start-up of enterprises in the general market, there is a limited number of downstream spot purchases. As of press time, the price of Cassava general ethanol in East China is between 6,400 and 6,450 yuan/ton.

Corn ethanol in Northeast Jilin has increased by 100 yuan/ton. There are many early orders, low-end prices have disappeared, and enterprise equipment maintenance is imminent. As of press time, the general price of corn ethanol in Jilin is 6,150 - 6,200 yuan/ton.

Prices in Heilongjiang in Northeast China were undetermined as of press time, but there is a possibility of rising. Supported by major factory maintenance and early orders, companies have no obvious inventory for food.

The reason for this is that Henan is facing the price weakness is as follows: on the one hand, the inventory of enterprises with limited downstream demand has increased; on the other hand, enterprises need to withdraw funds to purchase raw materials. Moreover, sales windows across some regions have not been opened, and sales volume is limited. However, if surrounding prices rise under the influence of rising prices, the possibility of Henan following suit will not be ruled out.

Enterprise maintenance status: The total shutdown capacity is 1.95 million tons, and the total production reduction is 5800 tons/day (including edible ethanol and fuel ethanol production)(statistical method is overlapping downtime). Fukang stopped feeding on July 20, and the entire line was repaired for one month., Tianyu stopped feeding on July 6 for one month. Hongzhan Bayan will stop feeding on June 20 and the estimated duration is 20 days. Hongzhan Laha Phase I will stop on May 27. Wanli Runda has a full-line maintenance plan in July, and the specific downtime has not yet been determined. Longhe River in northern Jiangsu, East China, has a shutdown plan in early July. The start-up time is uncertain, and small factories in northern Jiangsu are basically down. Changxing, southern Jiangsu is expected to have downtime plans in mid-to-early July. If the production capacity to be overhauled can be carried out as scheduled, the price will be supported.