“If the Brazilian market or the European market needs it, the product will flow there. Here in the U.S., we import several hundred million gallons from Brazil because the marketplace will bring it in,” Renewable Fuels Association Communications Director Matt Hartwig said.
Brazilian ethanol traders have said that several companies have been analyzing the possibility of importing biofuel, but at current prices, such deals are not feasible.
Traders are of the view that deals will be more attractive in coming months as the sugarcane harvest decreases in Brazil’s center-south region, local ethanol prices rise and the local currency, appreciates against the US dollar.
Brazilian ethanol production this season is expected to reach around 28 billion liters and exports are forecast at around 2.8 billion.
Northern Brazil is the likely market for any potential US ethanol exports.
The gasoline sold in Brazil contains 25% ethanol.
Ethanol prices at main ports in northeast Brazil were currently around $0.70 to $0.72 cents per liter on a free on board basis, or $2.65 to $2.73 a gallon, according to trade sources.
