07 February 2012 16:12 [Source: ICIS news]
HOUSTON (ICIS)--Brazil ethanol prices fell again last week as ample supply outstripped a small increase in demand, research group CEPEA said on Tuesday.
CEPEA assessed hydrous ethanol at Brazilian reais (R) 1.0776/litre ($2.37/gal, €0.48/litre), down by 1.6% from R1.0956/litre in the week that ended on 27 January.
Anhydrous ethanol prices were assessed at R1.1560/litre, down by 0.8% from R1.1652/litre a week earlier.
Hydrous ethanol is used in Brazil as a standalone fuel in flexible-fuel vehicles (FFVs), competing directly with gasoline, while anhydrous ethanol is blended in gasoline at a mandated 20%.
CEPEA attributed supply pressure in Brazil to inventory reduction by some sugarcane mills in the key centre-south region.
The centre-south accounts for 90% of Brazil's ethanol production.
($1 = €0.76, R1.72)
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