Higher buying interest boosts ethanol prices in July

Cepea, August 3, 2020 – The average prices for hydrous and anhydrous ethanol increased in the spot market of São Paulo State in July, boosted by firm demand, largely because of the return of purchasers to the market.


Sellers’ firm stance underpinned ethanol prices too. Agents from some refineries were not present in the market, since they were focused on sugar production at this period of the crop. This scenario was observed in Goiás, Mato Grosso, Mato Grosso do Sul and Minas Gerais.

Thus, between July 27 and 31, the CEPEA/ESALQ Index for hydrous ethanol closed at 1.6920 BRL per liter (zero ICMS and zero PIS/Cofins), 5.8% up compared to that in the week between June 29 and July 3. For anhydrous ethanol, the CEPEA/ESALQ Index increased by 4.24%, to 1.9035 BRL per liter (zero PIS/Cofins).

As for the daily Index, the ESALQ/BM&FBovespa Index for the hydrous ethanol delivered to Paulínia (SP) closed at 1,766.50 BRL/cubic meter (zero taxes) on July 31, 5.8% up compared to that on June 30.

Some Brazilian agents believe that the upward trend of quotes last month was linked to the return of purchasers to the market, aiming to replenish inventories. Higher demand from distributors since June points to an increase in the consumption of ethanol in Brazil. The high competitiveness of this fuel in the major consuming centers in Brazil, and, for anhydrous ethanol, higher sales to other regions and lower competitiveness with the product imported influenced this scenario.


Still, from the beginning of the 2020/21 season (in April) to July 15, hydrous ethanol sales decreased by 27% in central-southern Brazil, to 4.88 billion liters. In the same period last year, sales had totaled 6.67 billion liters. Anhydrous ethanol sales decreased in that period too, by 14.5%, to 2.12 billion liters, according to data from Unica (Brazilian Sugarcane Industry Association).





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