Ethanol prices rise in São Paulo amid firm producer negotiations

Ethanol prices in the São Paulo market are rising due to a firm negotiating stance by producers. According to Cepea, mills are maintaining high asking prices because they possess comfortable cash positions and sufficient storage capacity. This has resulted in low transaction volumes as producers wait for more favorable conditions, forcing distributors to accept higher costs to replenish stocks.

Nationally, the average price for ethanol in Brazil was R$ 3.91 per liter for the week ending August 22, according to the National Agency of Petroleum, Natural Gas and Biofuels (ANP). While the national average remained stable compared to the previous week, prices varied significantly by region. For instance, Goiás saw a 2.58% decrease, while Minas Gerais experienced a 3.45% increase.

Ethanol remains economically competitive in ten states and the Federal District, where its price is less than 70% of the cost of gasoline. In markets such as Mato Grosso, São Paulo, and Mato Grosso do Sul, the price parity remains well below this threshold, indicating a continued advantage for biofuel consumers in those regions.