18 January 2008 18:46 [Source: ICIS news]
HOUSTON (ICIS news)--Brazil will likely ship up to 700m gal (2.6bn litres) of ethanol to the US through Caribbean Basin Initiative (CBI) countries in 2009, as the US will need it to meet domestic demand, a US producer said on Friday.
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Under US law, the equivalent of up to 7% of US annual production can imported tax-free in 2009 via the 19 CBI countries, which include
Although the CBI is a
The import restriction kept the arbitrage closed for
In 2006, half of
US ethanol prices fell below $1.70 (€1.16)/gal in the third quarter of 2007, but spot values have rebounded since then, trading this week at $2.40/gal FOB (free on board) New York Harbour, according to global chemical market intelligence service ICIS pricing.
The new RFS will require the
The RFS will generate a market for 9bn gal/year of ethanol in 2008, and 11bn gal/year in 2009, one source said.
According to one source, Brazilian ethanol would likely flow to markets on the US East Coast, particularly to southeastern states, such as Florida, which is considering a proposal to further encourage the use of biofuels in its gasoline market, one of the largest in the country.
Florida Governor Charlie Crist was quoted as saying during a recent trip to
($1.00 = €0.68)
Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels.
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