Cepea, May 16, 2018 – After dropping for two months, prices for anhydrous and hydrous ethanol resumed increasing in São Paulo, influenced by higher demand. Between May 7 and 11, the CEPEA/ESALQ Index for hydrous ethanol closed at 1.5184 BRL per liter, 4.1% up compared to the week between April 23 and 27.
Higher demand for hydrous ethanol from distributors was mostly due to gasoline price rises by Petrobrás – according to data from ANP (National Agency of Petroleum, Natural Gas and Biofuels), hydrous ethanol prices have been more advantageous than gasoline C quotes for a month.
Data from Unica (Brazilian Sugarcane Industry Association) indicate that ethanol production (anhydrous and hydrous) totaled 2.72 billion liters in central-southern Brazil in April/18, 67.7% up compared to April/17. The volume of hydrous ethanol produced almost doubled in that period.
Mills from that region sold 1.91 billion liters of ethanol last month, 10% up compared to the same period of 2017. That was due to the larger amount of hydrous ethanol traded in the Brazilian market, which totaled 1.33 billion liters, 38.4% higher than in 2017 (961.98 million liters).
On May 15, the ESALQ/BM&FBovespa Index for hydrous ethanol delivered in Paulínia (SP) closed at 1,684.00 BRL (459.86 USD) per cubic meter (without taxes), a staggering 10.6% up compared to that on April 30. As for anhydrous ethanol, between May 7 and 11, the CEPEA/ESALQ Index dropped a slight 0.8% compared to the week between April 23 and 27, to 1.6516 BRL per liter.
EXPORTATIONS – Anhydrous and hydrous ethanol shipments totaled 74.1 million liters in April, volume 12.4% larger than that in March/18, according to data from Secex. Revenue totaled 47.4 million USD, 13.4% up compared to that in the previous month. In Real, revenue totaled 161.5 million BRL last month. Compared to the same period last year, the volume exported decreased 42.4%, and revenue, 37.4%.