Jason Barton

Professional Information and Energy News

US ethanol imports could temper rising prices in Brazil

without comments

Whoa. The idea of the U.S. exporting it’s much less efficient corn ethanol to Brazil, so they can temper rising prices in sugarcane ethanol, well, it strikes me as odd. Of course, this could just be hearsay, as Petrobras claims there will be no imports of U.S. ethanol. Since the U.S. has been the largest importer of Brazilian ethanol for years, this would be inefficient to trade these fuels, especially considering the amount of energy needed to transport ethanol.

Published: Monday, January 25, 2010 16:08 (GMT -0400)

Imported corn-based ethanol from the US could help ease ethanol prices in Brazil that have been rising because of increasing demand and heavy rains that have delayed the sugarcane harvest, Julio Maria Borges, a director at sugar and ethanol industry consultancy Job Economia e Planejamento, told BNamericas.

[…]

Brazilian sugarcane and ethanol industry association Unica has already asked the government to scrap the 20% tariff imposed on imported ethanol.

Brazil should set an example for the world by removing tariffs in order to stimulate other countries to do the same, the association said in a statement.

[…]

“It is a risk for the importer to ship ethanol from the US now, in a moment when prices will probably begin to fall because of lower demand and the start of a promising harvest year in March,” Borges added.

Read the entire article here.

Written by Jason

January 30th, 2010 at 1:51 pm