Hydrous ethanol price has dropped in distributors following the reductions at the mills. However, ethanol consumption is likely to be adjusted by new increases. From the point of view of competitiveness, Paulo Strini, from the Triex Group, believes that ethanol needs to fall at gas stations around 65% in the price parity with gasoline. Moreover, mills also see sugar giving more; sugar production rose from 41% to 47% and ethanol production fell from 57% to 51%, “and it should remain that way”, to such an extent that mills have also increased their contracted sugar export volumes since the middle of the year.
Source: Money Times/ Uniao Nacional da Bioenergia (*Translated by Ia Niani)