The RenovaBio program – which aims at increasing biofuels consumption – and rising gasoline prices in Brazil should lead to a 60% growth in local ethanol demand, said Henrique Falqueiro, director of NexSteppe, which operates in the sector.
“Therefore, the year 2018 should be used so that sugarcane plantations prepare for a reality of increasing competitiveness of ethanol in the pumps of the gas stations,” he said.
The production mix is expected to increase in favor of ethanol production, since, according to the company, the scenario for sugar has changed. Brazil is still the top world sugar producer, the commodity output in the country increased only slightly, from 39 million tons to 40 million tons in 2017.
Falqueiro added that the Brazilian automotive industry ended 2017 with a consistent recovery in production and sales, growing 14.3% in the year, according to the Brazilian Association of Automobile Manufacturers (Anfavea).
“The resumption of the automotive sector [output] also raises the demand for ethanol as a fuel,” added Falqueiro.
The material has been provided by InstaForex Company – www.instaforex.com