In Brazil, demand for hydrous ethanol demand has begun to recover after reaching a record high price late last year that drove consumers away from the fuel. In August, hydrous ethanol consumption reached 1.35 billion liters, up 3% from July and the highest since December. Annual consumption through August is down 14% at 9.89 billion liters, demonstrating how high prices hit consumption. August is typically a month of high consumption due to the sugarcane crush reaching its peak in the center-south region.
Hydrous fuel ethanol demand in Brazil was 1.35 billion liters in August, up 3% from July, but down 14% on year, data from the National Petroleum Agency (ANP) showed late Thursday.
August's demand was the highest since December when it reached 1.56 billion liters, data showed.
August usually is a month of high consumption when the sugarcane season is at its peak, consequently production is at full swing. It also coincides with return of school holidays in July.
The Center-South region accounted for 93% of total demand, or 1.26 billion liters, while the balance was consumed in the North-Northeast region.
Hydrous fuel ethanol is used in flex-fuel vehicles as a standalone biofuel. Hydrous ethanol is competitive with gasoline when its price at the pump is at most 70% of the gasoline price. Gasoline has 30% more energy content than its competitor hydrous.
In January through August hydrous consumption amounted to 9.89 billion liters, down 14% on year, ANP data showed.
Hydrous demand has been lower this due to lower production as producers have diverted more cane this season to produce sugar rather than hydrous ethanol on higher sugar prices.
Since the 2016-17 sugarcane season began April 1 in Center-South through September 1, hydrous production totaled 9.7 billion liters, down 6.7% on year, industry association UNICA showed.
In the North-Northeast, the sugarcane season has recently started in the main producing states. As of September 1, hydrous production totaled 128.3 million liters, down nearly 39% on the year, data from the agriculture ministry showed.
Lower hydrous demand translates into higher gasoline demand, which is blended with 27% of anhydrous ethanol, according to national mandate.
Anhydrous demand in August was 955 million liters, up 3% from July and up 8% from a year ago, ANP data showed.
Brazilian January through August anhydrous demand totaled 7.5 billion liters, up 5% on year. the Center-South region accounted for 74% of the total consumption, while the balance was consumed in the North-Northeast.
Season to date in Center-South anhydrous production was up 11% at 6.74 billion liters, while in the North-Northeast the output was up 1.7% at 219.8 million liters.
Fount: https://www.platts.com/latest-news/agriculture/santos-brazil/august-brazilian-hydrous-fuel-ethanol-demand-26553439
