UNICA SAYS NEW POLICY DOES NOT BOOST HYDROUS ETHANOL DEMAND

摘要

Centre/South cane industry group Unica said sales of hydrous fuel etha-nol by cane millers have been stagnating around 1 bln litres since April. This comes despite the PIS/COFINS tax exemption for hydrous fuel grades implemented in May. In June, 1.030 bln litres of hydrous fuel ethanol were sold in the Centre/South, which was even down 3% m/m. Industry sources point to the rains starting late May which prevented prices at the pump from declining to more competitive levels when compared with gasoline. However, expectations for drier weather could result in a slight decline in prices, possibly settling at a 62% parity to gasoline, below the necessary 69% to make the fuel competitive against gasoline.