The Ethanol Market Trended Upward Since September

By SKYSEVEN Chemical Technical Team · 2026-09-21

Share:

According to the commodity market analysis system of SunSirs, the domestic price of ethanol has been adjusted to 5,570 RMB/ton, marking a 1.40% increase since September and a 0.11% decline year-on-year. Ethanol prices have shown significant gains, driven by a combination of factors: reduced supply, tight market availability, high transaction premiums at major production plants, and rising downstream demand.

Market Analysis

Regarding costs, the national average price of corn has risen slightly, though regional price trends vary: prices in the Northeast remain stable, while prices in Henan have declined. The impact of cost factors on ethanol is mixed.

On the supply side, ethanol production facilities with an annual processing capacity of 4.24 million tonnes underwent shutdowns last month. China's ethanol output in August stood at 835,000 tonnes—an increase of 28,700 tonnes (or 3.56%) month-on-month—bringing the cumulative production to the first eight months of the year to 7.0051 million tonnes. Factors influencing the ethanol supply landscape present a mixed picture.

On the demand side—specifically regarding downstream sectors—industries such as fine chemicals, solvents, and fuel blending ramped up restocking efforts ahead of the holiday. The concentrated emit of essential procurement demand drove a steady recovery in market trading activity; total domestic demand reached 182,200 tonnes during the period. With the supply-demand stability remaining in negative territory, the market experienced a temporary supply-demand gap characterized by a shortage of supply. Overall, demand-side factors to ethanol were favorable.

Market outlook

Supported by the triple tailwinds of low inventories, essential restocking demand, and rising logistics costs, ethanol spot prices are expected to continue fluctuating at high levels leading up to the holiday. However, as the pre-holiday stocking rush concludes and the pace of essential downstream purchasing slows—compounded by the gradual recovery of logistics capacity and a decline in transport costs—analysts at SunSirs anticipate that the ethanol market will primarily undergo a period of consolidation and fluctuation.

Previous

The Polyamide Filament Market Was Experiencing a Continuous Upward Price Trend

Next

Shandong Union Science and Technology Plan to Invest and Build Factory in Egypt

Quick inquiry

Create

Inquiry Sent

We will contact you soon