According to the Commodity Market Analysis System of Shengyishe, the domestic ethanol market was operating weakly in November. From November 1st to 30th, the average price of domestic ethanol producers dropped from 6895 yuan/ton to 6787 yuan/ton, with a 1.56% decrease in price during the cycle and a 1.31% year-on-year increase in price.

At the beginning of the month, there was a significant difference in the operating rates of production enterprises between regions. However, downstream procurement was mainly in demand, inventory accumulation was severe, and the ethanol market was weak and consolidated, leading to an increased bearish sentiment in the market. In mid month, new downstream orders continued to be weak and did not show any improvement. There was an increase in supply, and transportation conditions in some areas were limited due to weather conditions; The demand side has not improved, and low-end transactions in the ethanol market prices. In the latter half of the month, the impact of snowfall weather in some areas on logistics delivery time and delivery prices has led to a weak consolidation of the ethanol market.

In terms of cost, as we enter mid November, the market volume of corn in the production areas continues to increase, and the domestic corn market supply continues to rebound. The new season of corn production has become a certainty, and downstream trading entities have a strong wait-and-see attitude. The demand for animal husbandry feed continues to be sluggish, coupled with the continuous arrival of imported corn to ports, the domestic corn market supply is relatively loose, and the overall price of corn in the market is under pressure and fluctuates weakly. The cost side of ethanol is influenced by bearish factors.

On the supply side, there is a significant difference in the operating rates of production enterprises in different regions, with 30.74% operating in East China and 89.10% operating in Northeast China; The operating rate in the southern and western regions is 11.52%. In the short term, domestic ethanol production in Northeast China is stable or slightly increasing, and small factories have plans to start production. The operating rate in East China fluctuates at a low level. The operating rate of coal to ethanol remains stable in the short term. The supply side of ethanol is affected by bearish factors.

On the demand side, most ethyl acetate factories will maintain normal production status in November. Other chemical essential procurement. The demand for Baijiu is average. The short-term demand for ethanol is mixed.

In the future market forecast, the cost is bearish, and there are significant regional differences in supply and demand. Another round of snowfall is approaching, which will affect the circulation speed of goods and the increase in freight rates in the main production areas of Northeast China. Ethanol analysts from Business Society predict that domestic ethanol will continue to be weak and downward in the short term.