08 July 2010 21:51 [Source: ICIS news]
HOUSTON (ICIS news)--Brazilian fuel ethanol demand surpassed that of gasoline in May, sugarcane industry association Unica said on Thursday, citing continued growth in the country’s flexible-fuel vehicle (FFV) market.
Ethanol demand in May reached 1.87bn litres, 7.72% more than the gasoline volume for the month, Unica said, quoting data from Brazil’s National Petroleum Agency (ANP).
The figure includes demand for hydrous and anhydrous ethanol, the association said.
Brazil blends anhydrous ethanol in gasoline at a mandated 25%, while hydrous ethanol is used as a stand-alone fuel in FFVs.
FFVs account for around 90% of Brazil’s automobile sales.
Unica said May was the first month in 2010 during which consumption of the biofuel topped that of gasoline.
The increase was partly due to a jump in the consumption of anhydrous ethanol that month, as Brazil raised its mandated blend level back to 25% from 20% on 1 May.
Ethanol demand also rose because of a reduction in hydrous ethanol prices, which made the product cheaper than gasoline and attracted more FFVs to the pump.
Demand for hydrous ethanol remained strong in the first half of June, but a renewed uptrend in Brazil could dampen consumption of the biofuel in July, a fuel distributor said.
Hydrous ethanol prices were assessed at Brazilian reais (R) 930-950/cubic metre ($1.99-2.03/gal) during the week ended 7 July, up on average by 12.6% from R830-840/ cubic metre four weeks earlier, according to ICIS.
Brazil is the world’s second-largest ethanol producer after the US, but the top consumer of the biofuel on a percentage basis.
($1 = R1.77)
Doris de Guzman examines alternative processing, new technology, R&D and other sustainability initiatives in Green Chemistry
For more on ethanol, visit ICIS chemical intelligence
To discuss issues facing the chemical industry, go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections