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Brazilian ethanol output starts to climb as Pakistani rivals suffer

  • Drier weather in the second half of July has allowed Brazilian sugarcane production to gather pace, fuelling strong demand for ethanol. Sugar production in the centre south region rose 37% YoY in the second half of July, according to the most recent UNICA data. Overall sugar production in Brazil was still down 10% YoY at the beginning of August, with ethanol production a more attractive outlet for sugar producers, driving ethanol output up 3% YoY. Ethanol production yields for 2015/16 are up to 43.5 litres of ethanol/ton of sugar, a gain of 3% on 2014/15 levels, whereas sugar production from sugarcane is down over 10%. 59% of the current sugar harvest has been used for ethanol production, up 3% YoY. Sugarcane quality improved slightly in the second half of July, but still remains 4.48% lower than 2015/16. Hydrous ethanol production for consumption in Brazil’s flex fuel vehicle fleet is up 12% YoY to 37 million mt, with anhydrous production dropping 21% to 20 million mt so far for 2015/16. Domestic sales of hydrous ethanol were up almost 50% YoY in July.


  • The 2015/16 crushing season in Pakistan is expected to produce 10% less sugarcane than previous years, according to Pakistani ethanol producers. Pakistani sugar producers have suffered from extreme weather conditions this year, with a drought earlier in the season followed by more recent flooding. As the milling window comes to a close, this has left Pakistani ethanol suppliers short on their commitments to the Philippines, South Korea and Japan, where buyers are looking elsewhere for supply. Lack of Pakistani ethanol supply has left short term deliveries of B-grade ethanol into parts of Asia suffering, and Brazilian sellers meanwhile are unable to step in to cover immediate shorts due to the long lead on South American delivery times. Improved Indian sugarcane prospects offer some alternative. Indian sugarcane production is up 7.19 million tonnes this year to 359.33 million mt, according to the Indian Ministry of Agriculture.

1 Comment

  • Looking for B grade denatured ethanol in bulk for shipments of 2-3 kt to S E Asia &/or East Asia. Pls advise if any interests to supply.

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