Weak demand presses down ethanol prices in Brazil

Cepea, July 2, 2021 – The prices for hydrous and anhydrous ethanol have dropped for two consecutive weeks in the spot market of São Paulo State (SP), pressed down by the weak demand. Only sporadic deals were closed in the second fortnight of June, since ethanol prices are less competitive than gasoline C prices in many Brazilian capital cities.

 

Thus, between June 14 and 18, the CEPEA/ESALQ Index for hydrous ethanol averaged 2.8057 BRL/liter, 2.42% down from that in the previous week. The CEPEA/ESALQ Index for anhydrous ethanol averaged 3.2538 BRL/liter, 3.42% down in the same comparison.

 

In that same period, the ESALQ/BM&FBovespa daily Index for the hydrous ethanol delivered to Paulínia (SP) averaged 2.869.50 BRL/cubic meter (zero taxes), 2.14% down from that in the previous week. Devaluations were also influenced by the higher volume of ethanol from other states, such as Goiás, Mato Grosso and Mato Grosso do Sul, arriving in SP.

 

Despite the recent price drops, ethanol sales prices are still attractive, since they are higher than that in the same period of previous season, in nominal terms.

 

(Cepea-Brazil)

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