05 March 2013 17:48 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil hydrous ethanol prices in the spot market have risen farther this year than anhydrous prices have, research group CEPEA said on Tuesday.
Hydrous ethanol price rose 11% and anhydrous increased by 1% since January 2013, according to CEPEA.
CEPEA said the rise in hydrous ethanol prices is due to supply and demand dynamics.
Despite an 8.4% increase in the sugar cane crush during the 2012/2013 season, which ended in January, the allocation of sugar bound for hydrous ethanol production was lower than in last year, CEPEA said.
However, anhydrous ethanol saw a higher allocation of sugar during the same period, according to CEPEA.
Brazil blends anhydrous ethanol in gasoline at a mandated 20%, while hydrous ethanol is used as a standalone fuel in flexible-fuel vehicles (FFVs).
CEPEA said exports increased by 84% for both hydrous and anhydrous from April 2012 through January 2013 year over year.
Brazil will increase its anhydrous ethanol blending rate in gasoline to 25% on 1 May, the government announced recently.
CEPEA prices are ex-tank and do not include taxes.
($1 = €0.77, R1.98)
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