Since March, the ethanol market price increase in China has been significant

March 10 news

According to the commodity market analysis system, since early March, the price of ethanol in China has risen to 5,716 CNY/ton, with a price increase of 3.48% during the period, a month-on-month increase of 4.23%, and a year-on-year increase of 7.70%. The rise in the price of fermentation ethanol in China is mainly driven by the following factors: quotations from major factories in many regions have increased, and the cost, supply, and an increase in downstream orders have collectively supported the continuous rise in ethanol prices.

Cost Perspective: From the cost perspective, in terms of bio-fermentation ethanol, the high prices of corn—the primary raw material—continue to provide strong cost support, and the market for cassava, another key raw material, is also trending upward. These factors are having a positive impact on ethanol costs.

Supply side, from the supply perspective, there is a possibility of recovery from the reduction or shutdown of ethanol plants, but major plants may maintain low production levels due to cost pressure. The ethanol supply situation is influenced by positive factors.

On the demand side, downstream chemical industries are experiencing rigid demand and procurement, driving up prices. Overall, ethanol plant inventories are expected to continue declining. The demand side for ethanol is being influenced by relatively positive factors.

Market forecast: The supply from major ethanol-producing regions in China has slightly decreased, but the current supply and demand situation still maintains a state of oversupply. Ethanol analysts predict that the ethanol market will mainly focus on consolidation.