Firm demand underpins the upward trend of ethanol prices in Brazil

Cepea, June 17, 2020 – Firm demand pushed up the prices for hydrous and anhydrous ethanol in São Paulo State in the first fortnight of June. Thus, the CEPEA/ESALQ Indexes for these biofuels have been on the rise for seven and six consecutive weeks, respectively.


Between June 8 and 12, the CEPEA/ESALQ Index for hydrous ethanol averaged 1.6746 BRL/liter (zero ICMS and zero PIS/Cofins), 9.4% up compared to that in the week between May 25 and 29. The CEPEA/ESALQ Index for anhydrous ethanol averaged 1.8610 BRL (zero PIS/Cofins), 11.8% up in the same comparison.


As for the daily Index, the ESALQ/BM&FBovespa Index for the hydrous ethanol delivered to Paulínia (SP) closed at 1,746.00 BRL/cubic meter (zero taxes) on June 15, 8.3% up compared to that on May 29.


CENTRAL-SOUTHERN BRAZIL – Hydrous ethanol prices increased in the major producing states from central-southern Brazil in May. The gradual increase in the demand for the biofuel added to the advantage of ethanol over gasoline at pumps continued to push up prices. Besides, sellers’ firm stance also helped to boost quotes in the Brazilian market.


Cepea surveys showed that hydrous ethanol prices rose by 7% between April and May in Goiás (deals within the state); in Mato Grosso do Sul (sales to São Paulo State and southern Brazil), by 6.8%; in Minas Gerais, by 5.03%; and in Paraná, by 5.77% (for MG and PR, the averages reflect both local deals and sales to other states) – all simple averages and including taxes (ICMS and PIS/Cofins).


In Mato Grosso (considering trades within the state), the simple average dropped by 4.15% between April and May, primarily due to the fast production pace at corn-ethanol refineries, besides the beginning of sugarcane crushing in that state.




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