Demand is high, and Indexes rise by more than 13% in the first half of May

Cepea, May 18, 2021 – Prices for hydrous and anhydrous ethanol resumed rising sharply in São Paulo State (SP) in the first fortnight of May, boosted by the high demand from distributors, which purchased high volumes of the biofuel.

 

Thus, between May 10 and 14, the CEPEA/ESALQ Index for hydrous ethanol closed at 3.0488 BRL/liter, a staggering 14.6% up from the average in the week between April 26 and 30. For anhydrous ethanol, the CEPEA/ESALQ Index increased by 15.5%, to 3.4935 BRL/liter. These were the highest price rises since the week between February 15 and 19, when these Indexes rose by 12.43% and 10.63%, respectively. Between April 30 and May 14, the ESALQ/BM&FBovespa daily Index for the hydrous ethanol delivered to Paulínia (SP) averaged 3,105.70 BRL/cubic meter (zero taxes), 13.4% up in the same comparison.

 

Besides demand, supply influenced prices too. The production of sugar and ethanol has decreased, since a low number of plants began crushing sugarcane. Besides, the quality of the raw material is lower, according to a report from Unica (Brazilian Sugarcane Industry Association) released on April 27.

 

The faster trading pace and the consequent valuation of ethanol were observed in all the regions in central-southern Brazil. The flow of ethanol to northeastern Brazil was also high, due to the offseason in that region.

 

EXPORTS – In April, Brazil exported 107.5 million liters of ethanol (anhydrous and hydrous), 47% down from that in March, but 35% up from that in April 2020, according to Secex (Foreign Trade Secretariat). Revenue from shipments totaled 53.9 million USD last month.

 

(Cepea-Brazil)

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