Cepea, September 16, 2020 – After ending August on the rise, prices for hydrous ethanol resumed dropping in São Paulo State (SP) in the first fortnight of September. Between September 8 and 11, the CEPEA/ESALQ Index for hydrous ethanol averaged 1.7741 BRL per liter (zero ICMS and zero PIS/Cofins), 1.95% down compared to that in the last week of August (24 – 28). The price drops for gasoline at refineries influenced the devaluation of hydrous ethanol in that period. Besides, agents from some refineries needed to make room in storage tanks, increasing supply in the market.
On September 15, the ESALQ/BM&FBovespa Index for the hydrous ethanol delivered to Paulínia (SP) closed at 1,805.00 BRL/cubic meter (zero taxes), 4.35% down compared to that on August 31.
The volume of hydrous ethanol marketed in São Paulo State increased in the second week of September, indicating that inventories were replenished after the holiday in Brazil, on Sept. 7th (Independence Day). As regards anhydrous ethanol, the volume sold in the spot market decreased, indicating that distributors are now focused on the collection of the product previously sold through contracts.
According to data from Unica (Brazilian Sugarcane Industry Association), from the beginning of the 2020/21 season (in April) to September 1st, sales of hydrous ethanol in the Brazilian market were lower than that in the same period of the previous season. In August, refineries sold 2.38 billion liters in the domestic market, 20.54% down compared to that in August/19. On the other hand, the volume allocated to exports hit 306.34 million liters in August, 6.28% higher than that in the same month last year.