Opinion Focus
- Cane mills in Brazil are exporting increasing amounts of ethanol.
- In January of this year, Brazil broke the record for ethanol shipments.
- Among the main export destinations are Europe and South Korea.
Brazilian cane mills have been increasing international shipments of ethanol. This is in response to the government’s fuel tax exemptions, which have pressured local prices making export returns more attractive.
In January, Brazil broke the record of ethanol exports with 264.9 million litres shipped – 161% more than in the same period of 2022. The main destinations in January were the Netherlands, South Korea, Ghana and the United Kingdom.
Source: Comexstat
The movement has favoured the sector. Last week, the largest companies in the sugar and ethanol market released their latest balance sheet, with positive export indicators. São Martinho shipped 242.7 million litres of ethanol between April and December last year, compared to 85.1 million in the same period of 2021. Now, between January and March, the expectation is to export 79 million litres of ethanol.
Source: North Star
Raízen highlights in its report that the 58% expansion in ethanol sales volumes in the third fiscal quarter reflects the sales strategy aimed at global markets, with emphasis on Europe, United States and Japan. The company exported around 40% of its ethanol production in the nine months of the harvest. In 2023, the expectation is for growth, due to a series of contracts signed with the international market, according to the company.
Source: Grains Council; Bloomberg
Exports will move through liquid terminals at the port of Santos. See below how ethanol is transported and shipped.
