Brazil ethanol prices up on supply pinch - Cepea

29 April 2008 22:36  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian ethanol mill prices rebounded in the week ended 25 April, after dropping for four weeks in a row, as stronger demand and tighter supply provided a support floor to domestic prices, research group Cepea said on Tuesday.

Cepea assessed anhydrous ethanol at Brazilian reais (R) 0.7959/litre ($1.78/gal), up by 2.98% from R0.7728/litre in the week ended 18 April.

Hydrous ethanol was assessed at R0.7251/litre, up by 4% from R0.6972/litre in the previous week.

Cepea attributed the drop in supply to bad weather in the key centre-south region.

Heavy rainfall in the centre-south in the past two weeks has interrupted the restart of several ethanol mills, market sources said.

Centre-south mills operate from April to November, the months that coincide with the sugarcane harvest in the south of Brazil.

Cepea’s price assessments do not include a federal tax of 3.65% levied on both hydrous and anhydrous product. A state tax of 12% is also applied to hydrous ethanol in Sao Paulo.

($1 = R1.69)

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By: William Lemos
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