Cepea, August 3, 2021 – The amount of hydrous ethanol sold in July (spot market) by the ethanol plants from São Paulo was the lowest since February 2017, according to data verified by Cepea, and 13% lower than that in June. Compared to that from July 2020, the volume marketed last month was 28.4% lower.
This scenario is partially linked to the consequences of the restrictive measures adopted because of the covid-19 pandemic in Brazil, which limited people’s mobility. In general, the volume of fuel consumed has not yet returned to the levels observed in previous years. Also, the exchange ratio between the prices for hydrous ethanol and gasoline, which has been surpassing the level considered indifferent by owners of flex vehicles, justifies the decrease in hydrous ethanol sales.
Data from Cepea show that the sales decrease for hydrous ethanol is also linked to the lower number of contracts closed: on the average of the three first months of the season, the number of contracts closed was 39% lower than that in the same period last year.
PRICES – Ethanol prices have been firm in Brazil, considering the current period of the year-crop. In July, the average of the CEPEA/ESALQ Index for hydrous ethanol (considering the full weeks of the month) closed at 2.9411 BRL/liter, 1.32% up from that in the full weeks of June. In the same comparison, for anhydrous ethanol, the CEPEA/ESALQ Index averaged 3.3873 BRL/liter (considering only the spot market), 1.1% up in the monthly comparison.
Considering the period between April and July 2021, the average price for hydrous ethanol closed at 2.8815 BRL/liter. For anhydrous ethanol, the average in the same period closed at 3.2205 BRL/liter. In real terms, these averages are 38.5% and 41.3% higher than that in the same period of 2020 (values were deflated by the IGP-M from July/21).