08 April 2014 18:38 [Source: ICIS news]
HOUSTON (ICIS)--Brazilian hydrous ethanol prices saw a new sharp decline in the week ended 4 April as supply continued to increase following the sugar cane harvest restart while buying interest remained low, Brazilian research group CEPEA said on Tuesday.
CEPEA assessed average hydrous ethanol prices at Brazilian reais (R) 1.3037/litre ($2.24/gal), or 6% less than the group’s assessment a week earlier. Anhydrous prices were assessed at R1.5845/litre, 0.3% higher than in the previous week. Hydrous ethanol is used as fuel directly in vehicles while anhydrous ethanol is mixed with gasoline at a 25% mandated content.
Distributors are only buying what they need to take care of short-term demand, CEPEA said. Prices are coming back following steady rises earlier this year when there were some concerns ethanol stocks could not last until the harvest restart, CEPEA reported at the time.
Demand for hydrous ethanol has declined because the fuel rose so much earlier this year that its price became less competitive in relation to gasoline. Buyers at fuel pumps have been switching to gasoline in recent weeks.
Anhydrous ethanol prices, meantime, are stable thanks to the greater gasoline demand, the group has said in recent weeks.
R 2.20 = $1
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