Brazil anhydrous ethanol prices still rising

19 April 2011 15:36  [Source: ICIS news]

HOUSTON (ICIS)--Brazil’s anhydrous ethanol prices continued to rise sharply  in the second week of April on firm demand and limited supply, research group CEPEA said on Tuesday.

Brazil blends anhydrous ethanol in gasoline at a mandated 25%.

The product was assessed at Brazilian reais (R) R2.4727/litre ($5.89/gal) in the week ended 15 April, rising by 16% from R2.1331/litre a week earlier.

CEPEA assessed hydrous ethanol, which is used as a stand-alone fuel in flexible-fuel vehicles, at R1.3843/litre, only slightly off from R1.3854/litre a week earlier.

Hydrous ethanol prices began to soften in early April when supply from the new centre-south sugarcane harvest started to enter the market.

The centre-south accounts for around 90% of Brazil’s ethanol production. The harvest in the area runs from April to November/December.

Anhydrous ethanol supply from the new harvest is not expected to enter the market in significant volumes until mid-May, market sources said, indicating that anydrous prices will remain on an uptrend for at least another month. 

CEPEA prices are ex-tank and do not include taxes.

($1 = R1.59)

For more on ethanol visit ICIS chemical intelligence

By: William Lemos
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