Brazilian anhydrous ethanol retail sales surge in current harvest

29 October 2013 19:41  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Sales of Brazilian anhydrous ethanol have surged during the current harvest/crush season, pushed higher because of an increased mandated blend rate, research group CEPEA said on Tuesday.

From April through August, almost 26% more anhydrous was sold year over year in the retail network in the central-west, southeast and south regions, according to the national petroleum agency (ANP).

Quantities of anhydrous ethanol sold increased to 3.08bn litres from 2.45bn litres during the same period year over year, according to ANP.

Hydrous ethanol sales in the retail market increased by more than 8%, rising to 3.93bn litres from 3.63bn litres the previous year, ANP said.

CEPEA assessed average hydrous ethanol prices for the week ended on 25 October downward at Brazilian reais (R) 1.1662/litre ($2.02/gal, €0.38/litre), down 0.04% week over week, CEPEA said.

Anhydrous ethanol was assessed higher at R1.3188/litre, up 0.4 %, CEPEA said.

According to CEPEA researchers, more volume was offered in the spot market as producers needed to increase cash flow as the month of October closes.

Brazil blends anhydrous ethanol in gasoline at a mandated 25% as of 1 May, while hydrous ethanol is used as a standalone fuel in flexible-fuel vehicles (FFVs).

The sugarcane harvest in the centre-south, which accounts for 90% of Brazil's ethanol production, runs from April to November/December.

Brazil also produces ethanol in the northeast region of the country. The sugarcane harvest in that area runs from September to March.

The price does not include taxes or freight, according to the research group.

($1 = €0.72, $1 = R2.18)

By: Leela Landress
+1 713 525 2653

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