Brazil ethanol prices soften on continued supply pressure

17 July 2012 22:25  [Source: ICIS news]

HOUSTON (ICIS)--Brazil's ethanol spot prices remained on a downtrend in the second week of July as a result of continued supply pressure, research group CEPEA said on Tuesday.

CEPEA assessed hydrous ethanol at Brazilian reais (R) 1.0561/litre ($1.97/gal, €0.42/litre) in the week that ended on 13 July, down by 0.6% from R1.0623/litre a week earlier.

Anhydrous ethanol prices were assessed at R1.2982/litre last week, down by 1.2% from R1.3143/litre in the week that ended on 6 July, according to figures from the Brazilian group.

Brazil blends anhydrous ethanol in gasoline at a mandated 20%, while hydrous ethanol is used as a standalone fuel in flexible-fuel vehicles (FFVs), competing directly with gasoline.

CEPEA said ethanol prices in Brazil are dropping because the sugarcane harvest in the country's key centre-south region is at its peak.

The harvest runs from April to November/December.

However, the group added that the reduction in spot prices this year is not as pronounced as in previous years because of a greater balance between a smaller sugarcane harvest and weaker demand for the biofuel.

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

($1 = R2.03)
($1 = 0.81)

Follow William on Twitter 


By: William Lemos
+1 713 525 2653



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index