Cepea, May 5, 2020 – In April, the first official month of the 2020/21 crop, the average ethanol prices (hydrous and anhydrous) dropped sharply in São Paulo. Considering the full weeks of the month, the CEPEA/ESALQ Index for hydrous ethanol averaged 1.3571 BRL per liter, 25% down compared to that in the full weeks of March. For the CEPEA/ESALQ Index for anhydrous ethanol, the average was a steep 24.4% lower in the spot market, averaging 1.5740 BRL per liter in April.
Pressure came from lower demand, since fuel distributors have been purchasing ethanol in the spot market only sporadically. Higher volumes of hydrous ethanol were marketed in the first and fourth weeks of the month, due to the replenishment of inventories. Thus, the total amount of hydrous ethanol traded in April was 26% higher than that marketed in March 2020 (off-season), but 56.8% lower than that in April 2019.
As for the daily Index, the ESALQ/BM&FBovespa Index for the hydrous ethanol delivered to Paulínia (SP) closed at 1,420.50 BRL/cubic meter (zero taxes) on April 30, stable (-0.1%) compared to that on March 31.
According to data from Unica (Brazilian Sugarcane Industry Association), in central-southern Brazil, hydrous ethanol sales decreased by a steep 35.8% in the first fortnight of April, totaling 560.48 million liters. This was linked to the recommendations for social distancing because of the coronavirus pandemic. As regards anhydrous ethanol, 201.2 million liters were sold, against 302.91 million liters in the same period last year.