15 May 2007 23:26 [Source: ICIS news]
HOUSTON (ICIS news)--Brazil’s ethanol makers will push for higher blend levels in gasoline next month to reverse a decrease in domestic ethanol prices, a fuel distributor said on Tuesday.
The ethanol industry will push for an increase to 25% blend effective on 1 June, the source said.
Brazil currently blends ethanol in gasoline at a mandatory 23%.
Brazil hydrous ethanol prices were assessed at $452/cubic metre (cbm) on 9 May, down from $570/cbm four weeks earlier, according to global chemical market intelligence service ICIS pricing.
Anhydrous prices fell to $527/cbm from $570/cbm in the same period.
A trader said ethanol-industry representatives would meet with government officials on Wednesday to discuss the blend issue.
Brazil’s ethanol prices started dropping in early May amid increased supplies from the new sugarcane harvest in the centre-south. The area accounts for 85% of Brazil’s ethanol production.
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