Ethanol prices in Brazil’s Center-South region continue to break daily records due to high demand, small volumes, and limited stocks. “Ethanol prices remain on an upward trend as stocks are quite low, and current demand is rising to pre-pandemic levels. Prices in the Center-South are expected to reach above BRL 4,000 per cubic meter,” said a trader from São Paulo. “Ethanol will need to offset demand to control rising prices.” Several frosts in the Center-South, as well as high premiums for sugar production, and favorable parity with gasoline are the main reasons for the intense increase in 2021. On August 16, S&P Global Platts evaluated the price of hydrated ethanol at R$3,855/m³ at Ribeirão Preto (SP) mills, up 141% from April 2020. Platts have also seen domestic anhydrous ethanol at R$3,900/m³ at the Ribeirão Preto mills, up 138% when compared to the low value of May 2020.
Source: Nova Cana (*Translated by Ia Niani)