Cepea, June 2, 2020 – Ethanol prices increased in São Paulo State in May, offsetting part of the losses registered between March and April. Quotes were boosted by the gradual resume of consumption in some important ethanol-consuming regions in Brazil.
Despite the coronavirus pandemic, the advantage of hydrous ethanol against gasoline at the pumps in São Paulo favored the demand for the biofuel, increasing distributors’ needs to replenish inventories. It is worth to mention that, in April, ethanol purchasers were absent from the market most of the month.
Sellers’ firm stance helped to push up ethanol quotes in São Paulo too, although the season is still beginning in central-southern Brazil.
As regards anhydrous ethanol, the number of deals increased in the Brazilian spot market, since the period scheduled for the definition of contracts was postponed, in order to help distributors to comply with the terms of Resolution 67 from ANP (Brazil’s National Agency of Petroleum, Natural Gas and Biofuels). Thus, sales in the spot market increased between April and May.
Considering the full weeks of May, the CEPEA/ESALQ Index for hydrous ethanol averaged 1.4352 BRL per liter, 5.75% up compared to that in the full weeks of April. As for anhydrous ethanol, the CEPEA/ESALQ Index increased by a slight 0.4%, averaging 1.5803 BRL per liter in the spot market.
The amount of hydrous ethanol marketed in May was 6.93% higher than that in April, but a steep 53.6% lower than that from May/19.