29/01/2013
IT's TIME TO BUY SUGAR... (from sugaronline.com)
Dear Claudio Maluf,
Global ethanol demand is likely to double by the end of the decade, according to the latest MECAS Report from the ISO, World Fuel Ethanol Outlook to 2020. Despite a potential 6-fold increase in demand from Asia; Brazil, the US and the EU are likely to remain the pivotal markets.
In Brazil, the ethanol blend in gasoline is due to increase from 20 to 25% in 2013 and state-run energy giant Petrobras is also expected to raise domestic gasoline prices. With the expected increase in ethanol demand Kingsman is warning that Brazilian farmers are considering switching their cane from sugar to ethanol production, which could have significant consequences for the sugar market, according to the report.
In the United States, the world’s largest producer and consumer of ethanol, imports have increased following the damage caused to the domestic corn crop which also lead to calls for the temporary cessation of the Renewable Fuels Standard (RFS).
The EU faces a different dilemma, with a proposed amendment to its Renewable Fuels Directive (RED) that would restrict the use of crop-based first generation biofuels as part of a plan to address the problem of Indirect Land Use Change (iLUC).
The MECAS World Fuel Ethanol Outlook to 2020 is a detailed analysis of past, present and future trends which addresses all of these issues for the dominant and emerging players in the ethanol fuel market.
