According to the Commodity Market Analysis System of the Business Society, the domestic ethanol market was weak in October. From October 7th to 30th, the average price of domestic ethanol producers dropped from 7000 yuan/ton to 6895 yuan/ton, with a 1.50% drop in price during the cycle and a 2.15% year-on-year increase in price.

At the beginning of the month, production enterprises mainly completed preliminary orders, with relatively stable inventory and stable prices. In mid month, the production enterprise shipped orders with stable prices, and some factory prices were not high. In the case of poor demand, the overall delivery situation is average. In the latter half of the month, the supply of production enterprises remained stable, market inventory accumulated, and new orders did not improve. The downstream of the main production areas just needed replenishment, and the ethanol market was mainly weak and organized.

In terms of cost, as we enter mid October, the market volume of corn in Northeast China continues to increase, and the high yield of new season corn has become a foregone conclusion. Downstream enterprises have a strong wait-and-see attitude, continuously lowering the purchase price of corn. Grain trading entities are cautious in purchasing and selling, and corn prices continue to be weak. Grassroots farmers have a strong willingness to sell grain, and the domestic corn market supply continues to increase. Under the pressure of strong market supply and weak demand, the domestic corn market prices continue to be weak and downward. There are temporary bearish factors on the cost side of ethanol.

On the supply side, the majority of production enterprises in various regions park their facilities, and the operating rate of normally operating enterprises remains at 30-40%. A small number of enterprises have low inventory, while most enterprises have relatively high inventory. Shuntong Short Stop is about to resume. Hongzhan Huanan is recovering, and there is a possibility of Liaoyuan Jufeng starting up. The supply side of ethanol is influenced by bearish factors.

On the demand side, most ethyl acetate factories maintained normal production status in October. Other chemical products require procurement. The short-term demand for ethanol is mixed.

In the future market forecast, costs are weak and supply and demand are short. Ethanol analysts from Business Society predict that the short-term domestic ethanol will continue to decline.