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Brazil to remain ethanol net importer
08.11.2019 23:16 "Agro Perspectiva" (Kyiv) —
As to the S&P Global Platts experts, within next few years, the Brazilian ethanol producers won’t be able to rise their output as high as to cover the country domestic ethanol consumption, so Brazil will have to continue importing the ethanol from US in order to overcome the domestic market deficit, Ukrainian National Association of Sugar Producers says referring to the Reuters report.
It is to be admitted, as of now, Brazil is the world second largest biofuels consumption market.
As to experts, Brazil domestic ethanol demand will grow by about 2.5% per year within the coming years due to the Brazil new federal policy aimed at expanding the ethanol use and support the ethanol price advantage over gasoline on the domestic market. This means that by 2025, the country domestic market will need another 5 milliard liters ethanol.
In meanwhile, Nicole Monteiro de Castro, Platts Senior Pricing Expert, affirms that the northeast Brazil within Feb 2019 Feb 2020 will face 1.04 milliard liters ethanol deficit.
«Even though the 20% import tax is applied to the ethanol lots which are in excess of duty-free quota, the ethanol imports will continue, since no ethanol output growth is expected within the northeast,» she admitted.
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