Brazil to remain net ethanol importer; U.S. fuel to supply Northeast -Platts

30 Oct by Vitaliy Dadalyan

Brazil to remain net ethanol importer; U.S. fuel to supply Northeast -Platts

Brazil to remain net ethanol importer; U.S. fuel to supply Northeast -PlattsAn ethanol production increase expected for Brazil, the world’s second largest market for the biofuel, will not be enough to cope with rising demand and the country will continue importing fuel from the United States to cover the shortfall. According to analysts from S&P Global Platts, demand for ethanol in Brazil will increase around 2.5% per year in coming years, due to a new federal policy to boost use and to the price advantage over gasoline in the local market. “Even with new capacity coming from corn-based ethanol plants, that won’t be enough to supply increasing demand,” Beatriz Pupo, senior biofuels analyst for Platts, said on Wednesday.