09 April 2013 19:00 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil hydrous ethanol prices in the spot market rose during the first week of harvest this season in Sao Paulo state, research group CEPEA said on Tuesday.
After five weeks of declines, prices are on the rise because of restocking by distributors following the week-long holiday of Holy Week and constant rain that has slowed the harvest and crushing season, CEPEA said.
Hydrous ethanol during the week ended on 5 April was recorded at Brazilian reais (R) 1.2142/litre ($2.31/gal, €0.47/litre), a 0.9% increase, according to CEPEA.
CEPEA assessed anhydrous ethanol prices in the week at R1.3351/litre, steady from the previous week, despite almost six times more product available in the market.
Brazil will increase its ethanol blending rate to 25% from 20% on 1 May, the government said in January.
Brazil blends anhydrous ethanol into gasoline. The country uses hydrous ethanol as a stand-alone fuel in flexible-fuel vehicles (FFVs), competing directly with gasoline.
Brazil had lowered the blend rate to 20% in October 2011 because the country had insufficient supplies of anhydrous ethanol to meet demand.
CEPEA prices are ex-tank and do not include taxes.
($1 = €0.77, $1 = R1.99)
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