13 November 2012 15:31 [Source: ICIS news]
RIO DE JANEIRO (ICIS)--Brazil’s ethanol exports will likely total 3bn litres during the 2012-2013 crop year, market sources said on Tuesday, predicting that the country is expected to ship similar volumes in the next crop year.
The projection refers to exports from the centre-south region, which accounts for 90% of Brazil’s ethanol production.
The amount of exports in the 2013-2014 crop year will depend on domestic demand, a market source said on the sidelines of the Latin American Petrochemical Association (APLA) annual meeting.
Ethanol demand in 2012 is growing at the level of gross domestic product (GDP), the growth of which in 2013 is projected to accelerate to as much as 4% after a sluggish 1.5% in 2012.
If ethanol demand increases along with GDP next year, the centre-south might have less material available for exports compared with this year, the source indicated.
Brazil’s centre-south sugarcane production is expected to remain mostly flat until 2014, another market participant predicted, a forecast that if confirmed, points to little or no increase in local ethanol production in the coming two years.
The APLA conference ends on Tuesday.
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