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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?

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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

  • NNE anhydrous trades at a discount to Center-South
  • Replacement costs from CS suggest Real 550 rise


The Brazilian North-Northeast anhydrous ethanol market continued a rally that began Jan. 22, finding support in higher regional hydrous ethanol prices, the end of the crop season, and a spike in replacement costs from Center-South.


Producers from the NNE are about to end the 2020-21 crop season in mid-March, lowering regional ethanol selling pressure and supporting part of the recent price increase seen in the spot market.

Another bullish factor has been the increased gasoline price in Brazil and consumers favoring hydrous ethanol because of its Real 1/liter price discount over gasoline in the NNE region. In the NNE, the reference of price parity below 70% of the gasoline cost is not necessarily the target to attract demand.

With lower gasoline consumption, anhydrous ethanol spot liquidity has been muted but, as the hydrous ethanol price has been rising on a daily basis, producers were not in a rush to sell anhydrous.

The Brazilian gasoline has a 27% blend of anhydrous ethanol.

Hydrous ethanol was last heard traded at Real 2,900/cubic meter ex-mill Pernambuco Feb. 26 and, according to a calculation from Sindaçucar, Pernambuco’s producer association, it would be equivalent to an anhydrous trade at Real 3,532/cu m, sharply above the last trade at Real 3,100/cu m DAP Suape heard Feb. 22.

In that scenario, while spot anhydrous demand was lacking, offers were also empty in the NNE, where most producers chose to remain out of the anhydrous market Feb. 26.

The recent price spike in the CS region also supported NNE prices as, in the near term, the CS product will be the only option to supply the region's ethanol demand.

According to the Feb. 26 Platts calculation, anhydrous ethanol transferred by road from CS would land in Suape at Real 3,650/cu m.

The import price parity suggests an even higher replacement cost, according to Platts calculations anhydrous ethanol imported from the US, including the 20% import tariff could land in Suape at Real 4,284/cu m or Real 1,184/cu m above the Platts DAP Suape assessment.

In case of a non-tariff market, without applying a 20% import tariff, anhydrous ethanol from the US could land in Suape at Real 3,583/cu m, still wide above the Platts assessment, capping any economic motivations to importers to bring anhydrous from the US to Brazil.

Weekly Assessment Rationale

DAP Suape anhydrous ethanol for one to 15 days forward from date of publication was assessed at Real 3,100/cu m on Feb. 26, up Real 30/cu m on the week.


The assessment considered the last trade heard in the market on Feb. 22 for 250 cu m at Real 3,100/cu m DAP Suape. After the trade, offers rose to Real 3,300/cu m, against no bids.

This rationale applies to symbol(s) <AAXFW04>

Market price heards

26 Feb 2021 — Anhydrous: Offer, Real 3,350/cu m, ex-mill Pernambuco

26 Feb 2021 — Anhydrous: Offer "Thu", Real 3,350/cu m, ex-mill Pernambuco

26 Feb 2021 — Hydrous : Traded "Thu" (500 cu m), Real 2,830/cu m, ex-mill Pernambuco (inside the state), 1-15 day

26 Feb 2021 — Hydrous : Traded, Real 2,900/cu m, ex-mill Pernambuco

26 Feb 2021 — Anhydrous: Traded "Mon", Real 3,000/cu m, ex-mill Alagoas

26 Feb 2021 — Anhydrous: Offer "Thu", Real 3,200/cu m, ex-mill Pernambuco

26 Feb 2021 — Hydrous : Offer, Real 2,950/cu m, ex-mill Pernambuco

26 Feb 2021 — Anhydrous: Offer, Real 3,300/cu m, DAP Suape

26 Feb 2021 — Anhydrous: Offer "Thu", Real 3,200/cu m, ex-mill Pernambuco

26 Feb 2021 — Anhydrous: Offer, Real 3,300/cu m, DAP Suape

24 Feb 2021 — Anhydrous: Offer, Real 3,350/cu m, ex-mill Pernambuco

24 Feb 2021 — Anhydrous: Traded "Mon" (500 cu m), Real 3,000/cu m, ex-mill Alagoas

24 Feb 2021 — Anhydrous: Offer, Real 3,140/cu m, DAP Suape

24 Feb 2021 — Anhydrous: Offer, Real 3,200/cu m, ex-mill Alagoas


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