Cepea, September 17th, 2021 – Cepea surveys show that the ethanol plants in São Paulo State (SP) have sold 15.5% less hydrous ethanol in the current season (2021/22) – in the spot market and through contracts – compared to that in the same period last year (April – August). Lower competitiveness for hydrous ethanol compared to gasoline C is one of the main reasons for this decrease.
The share of sales through contracts in the total volume of hydrous ethanol sold by ethanol plants decreased between 2020 and 2021. Considering data from April – August 2020, the number of contracts accounted for 24.4% of the total, decreasing to 20.7% in 2021. Lower sales were observed in the spot market too – monthly decreases have been observed since January/21.
On the other hand, the volume of anhydrous ethanol sold in the spot market and through contracts has increased this season. In the spot, sales have been 17.9% higher this year than in 2020 (between April and August), considering the ethanol plants in SP. As for sales through contracts, the increase has been even higher: 23%.
PRICES – Less than two months from the end of crushing the sugarcane from the 2021/22 season, the prices for anhydrous and hydrous ethanol continue to rise in central-southern Brazil. Theoretically, the period with high volumes being processed (peak of harvest) is ending, but the 2021/22 season will certainly be shorter than that in previous years. Weather conditions and the consequent lower ethanol supply are expected to influence the results of the current season.