Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

Price Assessment

Platts NNE Brazil Anhydrous Ethanol Price Assessment

  • What is NNE Brazil anhydrous ethanol?
  • How do we assess NNE Brazil anhydrous ethanol?
  • Weekly Assessment Commentary
  • Weekly Assessment Rationale
  • Market price heards

What is NNE Brazil anhydrous ethanol?

Clique aqui para visualizar esta página em português

Platts NNE Brazil anhydrous ethanol assessment the weekly price benchmark for physical ethanol delivered into Suape, Pernambuco, in northern Brazil.

The assessment reflects anhydrous ethanol Delivered at Place in Suape and takes into consideration ethanol produced regionally, imported from the Center-South region as well as volumes delivered from international locations.

How do we assess NNE Brazil anhydrous ethanol?

The NNE Brazil Anhydrous assessment reflects the weekly tradeable value of a spot anhydrous ethanol at Suape 1-15 days forward from the date of publication, based on trades, bids, offers and indications of tradeable value reported to S&P Global Platts pricing specialists.

Platts editors engage directly with producers, consumers, traders, brokers, and shippers to gather price information. Platts publishes this information and uses it to assess values. The information gathered through market surveys is considered in the final assessment.

These inputs are published throughout the day, in real-time, in the form of "market heards", to allow Platts to test the information, which forms the basis of the assessment and for market participants to give feedback on those inputs.

The assessment reflects a minimum volume 250,000 liters, or 250 m3, maximum volume 1,000,000 liters, or 1,000 m3. Other volumes may also be considered but in relation to the assessed volume range. Platts considers standard payment terms, such as payment within 10 days of delivery.

Weekly Assessment Commentary

The spot price of anhydrous ethanol in Brazil's North-Northeast region surged in the week that ended Friday, November 8, supported by stronger gasoline sales and lower availability of anhydrous in the region. The assessment moved up for the third consecutive week and was Real 165/cu m higher than in the same period of the prior year.

The movement was not typical considering that regional mills are at the peak of their crushing season, however, during this season most have been favoring hydrous ethanol production, resulting in a smaller availability of anhydrous in the spot market. Trades were widely reported out of Pernambuco and Alagoas state at Real 2,250/cu m, proving that the market was moving up during the week.

On Friday, offers were confirmed at Real 2,280/cu m ex-mill Pernambuco, while most regular participants were said to be out of the market, waiting for higher prices in the next week. A seller of imported ethanol from the US was still confirmed in the market Friday at Real 2,300/cu m, establishing a price ceiling to the DAP Suape bases.

There is a consensus that for early December many vessels are expected to start to arrive in Suape to discharge anhydrous from the US within the import quota, which means not paying the 20% import tariff, and depending on the arrival flow, this higher volume available in the regional market could start to cap the price.

According to S&P Global Platts calculations, anhydrous ethanol transferred by road from a mill in Ribeirao Preto to Suape port was valued at Real 2,600/cu m, up Real 20/cu m week on week. Platts assessed ex-mill Ribeirao Preto anhydrous ethanol at Real 2,200/cu m.

Platts valued imported anhydrous ethanol delivered CIF Suape, without the 20% import tariff, at Real 2,194/cu m, an increase of Real 58/cu m from last week, showing an open import arbitrage for producers with quota. The imported ethanol including the 20% import tariff, was valued at Real 2,617/cu m, proving a closed import arbitrage.

Weekly Assessment Rationale

Rationale - 08Nov19

DAP Suape anhydrous ethanol for one to 15 days forward from date of publication was assessed at Real 2,295/cu m Friday, an increase of Real 50/cu m week on week.

The assessment considered the last trades heard in the market on Thursday basis ex-mill Pernambuco at Real 2,250/cu m and the outstanding offer of imported cargo, DAP Suape, at Real 2,300/cu m. Platts considered a freight of Real 40/cu m from ex-mill Pernambuco to Suape port. Platts has also considered the fundamental aspects of small volumes of anhydrous available in the spot market, which showed value had moved higher from Thursday's trade in Pernambuco.

Market price heards

Delivery time: 1-15 days forward

Heards published on November 8

Quality Indication / Volume Price Location

Anhydrous

Bid

Real 2,200/cu m

DAP Suape

Anhydrous

Offer

Real 2,280/cu m

ex-mill Pernambuco

Anhydrous

Offer

Real 2,300/cu m

DAP Suape

Anhydrous

Traded (1,200 cu m)

Real 2,200/cu m

ex-mill Paraiba

Anhydrous

Traded (800 cu m)

Real 2,250/cu m

ex-mill Rio Grande do Norte

Anhydrous

Traded (1,000 cu m) "Thu"

Real 2,250/cu m

ex-mill Alagoas

Anhydrous

Traded (1,000 cu m) "Thu"

Real 2,250/cu m

ex-mill Pernambuco

Anhydrous

Trade (300 cu m) "Thu"

Real 2,250/cu m

ex-mill Alagoas

Anhydrous

Traded (500 cu m) "Wed"

Real 2,250/cu m

ex-mill Pernambuco

Anhydrous

Trade "early in the week"

Real 2,250/cu m

DAP Suape


Methodology and Specifications

See all agriculture methodologies
See all agriculture methodologies

See all agriculture products and services