
Average ethanol prices rose in August in the state of São Paulo, registering the first monthly increase of the 2026/27 season. According to data released by Cepea, both hydrated and anhydrous ethanol showed price increases during the period, amid expectations of rain in the Center-South region, higher sugar prices in the international market, and increased demand in the spot market.
According to data released by Cepea, the average prices of the two types of ethanol monitored by the Research Center rose in August. This movement marked the first monthly increase of the 2026/27 season and occurred amidst factors related to both the supply and demand for the biofuel. Among the points highlighted by Cepea is the forecast of rain for September in the Central-South region, which could cause shutdowns of industrial activities.
The rise in sugar prices on the international market also helped support ethanol prices in August. According to data released by Cepea, this movement occurred against a backdrop of concern about a potentially lower availability of sugar in producing countries. This scenario reinforced the price increase observed in the market and contributed to the rise in ethanol prices in São Paulo.
On the demand side, the return to school increased the number of vehicles on the road and brought more buyers to the spot market. According to data released by Cepea, the price advantage of hydrous ethanol at retail also continues to allow consumers to opt for the biofuel. This scenario helped to boost business in the producer segment and increased demand for the product.
In August, distributors continued acquiring new volumes to replenish stocks. According to data released by Cepea, given this scenario, distributors had to accept the prices offered by the producing units. The volume of hydrated ethanol traded by mills in São Paulo in August was the highest since January 2025, according to the Research Center.
