12 March 2013 20:57 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil hydrous and anhydrous ethanol prices in the spot market in Sao Paulo State are lower this week as the new harvest season is beginning, research group CEPEA said on Tuesday.
Ethanol from season 2013-2014 has already been traded in the Sao Paulo market as some mills have started to grind the sugarcane harvest and to offer biofuel, Cepea said.
According to researchers at Cepea, the startup of the harvest season will strengthen buyers’ negotiating power, especially for hydrous ethanol, and lower prices will surface.
Brazil blends anhydrous ethanol in gasoline at a mandated 20%, while hydrous ethanol is used as a standalone fuel in flexible-fuel vehicles (FFVs).
Brazil will increase its anhydrous ethanol blending rate in gasoline to 25% on 1 May, the government announced recently.
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