July 30, 2015
Sugaronline | http://goo.gl/ZUJB9E
Weaker domestic hydrous fuel ethanol prices for distributors translated into more competitive retail prices in southeast Brazil in the week ended July 25, the latest data from the country's National Petroleum Agency, or ANP, showed, reports Platts.
Southeast region hydrous fuel ethanol prices averaged 61.9% of the price of gasoline, down from 62.2% in the previous week, the data showed.
The fuel's price parity against gasoline slipped for the 22nd consecutive week, still the lowest level since early October 2010, when the parity was at 60.9%.
Hydrous fuel ethanol is used in Brazil as a standalone biofuel (E100) on flex-fuel vehicles.
To be more competitive than gasoline in Brazil, E100 has to be below 70% of the price of gasoline.
ANP data showed that hydrous prices at the pump for drivers purchasing the standalone biofuel fell 0.84% compared with the prior week.
Domestic prices for hydrous fuel ethanol in the key Centre-South sugarcane region, which includes the southeast region used by the ANP for its price data, have been under pressure in recent weeks as dry weather is speeding the pace of the crush, bringing more sellers into the market and pushing prices downward.
The Platts hydrous ethanol assessment ex-mill Ribeirao Preto fell to Real 1,355/cubic metre (US$397/cubic metre) on Monday. The value is 1% lower week on week and is also 3% down compared to the same period last year.
Consumption of ethanol during the new Centre-South sugarcane season has been strongly shifting toward hydrous, while gasoline sales have been declining.
In June, hydrous fuel demand in the Centre-South region reached 1.35 billion litres, up 53% from the year-ago month and up 4% from May, the latest data from ANP showed.
This brings the total hydrous consumption in the first half of 2015 to nearly 7.65 billion litres, surging 36% higher year on year.