Ethanol sales drop 30% in October and reach the lowest level since the beginning of the pandemic

The sale of ethanol by mills in the Center-South of Brazil, in October, was the lowest since the start of the Covid-19 pandemic, according to data released by the Sugarcane Industry Union (Unica) on Wednesday ( 10).

In all, 2.14 billion liters were sold last month, the lowest level since April 2020, when the sale of 1.81 billion liters was registered. The number represents a drop of 29.81% compared to the same month in 2020.

Considering only the domestic market, in October the sale of hydrated ethanol – sold at fuel pumps – registered a drop of 34.92%, from 1.89 billion liters to 1.23 billion liters.

The commercialization of anhydrous ethanol – which is mixed with gasoline – had a positive variation of 5.27%, with 842.67 million liters sold in 2021 against 800.49 million liters in 2020.

“The sales of the producers in the month of October reflect the readjustment of the fuel market in view of the conditions of supply and prices”, said, in a statement, the technical director of Unica, Antonio de Padua Rodrigues.

From the beginning of the harvest until the second half of October, the accumulated volume of ethanol sold by companies in the Center-South shows a retraction of 5.07%, to 16.90 billion liters.

Drop in sugar production

Also according to Unica, the amount of cane processed by the mills in the second half of October, 17.02 million tons, was 36.79% less than the same amount in the 2020/21 harvest.

The biggest drop in the period was registered in the state of São Paulo: 49.67%. In the other states of the Center-South, the decrease in processing was 17.07%. From the beginning of the 2021/22 harvest until November 1st, the crushing accumulated decrease of 10.85%.

The decrease in raw material processing and the sector’s focus on ethanol production also affected sugar production. In the last 15 days of October, 858.2 thousand tons were manufactured, 50.55% less than in the same period of the previous year.

weather effects

The sector was affected by drought and frost in the current season, which also resulted in an anticipation of the end of the harvest in a large part of the sector.

The number of units operating until November 1st was 134 companies, while 128 companies have already finished milling in the 2021/2022 cycle, with 57 companies closing in the last fortnight.

In the first 15 days of November, 87 new companies are expected to complete the harvest, added the association.

(*With information from Reuters Agency)