Brazilian ethanol imports in the second quarter of the year reached an all-time high for the period at 559.4 million liters, up 256% from same period last year, but down 22% from Q1, data from the Secretariat of Foreign Trade (SECEX), showed Thursday.
Almost 100% of the volume entered the country via ports in the Northeast region. The remainder entered through other ports and airports in the Southeast and South of Brazil.
Most of the volume discharged was anhydrous fuel to blend with gasoline to meet local demand, while the small balance is likely to be samples and product for industrial purposes, according to Kingsman, the agricultural analysis unit of S&P Global Platts.
Gasoline is blended with 27% anhydrous according to a national mandate.
In June only, ethanol imports totaled 199.5 million liters, down 20% month on month, but up from just 38 million liters a year ago.
Since last year, Brazil has increased imports due to tight supply as producers have allocated more sugarcane to sugar production at the expense of ethanol because of high international sugar prices.
Since the 2017-18 sugarcane season began April 1 through June 16, ethanol production (hydrous and anhydrous) in the key Center-South region amounted to 5.76 billion liters, down 17% year on year, data from industry association UNICA showed.
The Center-South region is made up of the Center-West, Southeast and South of Brazil.
The region also produces a small volume of ethanol from corn, which so far this season totaled 52 million liters, up 125% year on year, UNICA data showed.
Ethanol is also produced in the North-Northeast region using sugarcane as feedstock, but most of the states in the region are in the intercrop period. The 2017-18 season in the region will officially start in October.
In H1 2017, imports totaled 1.28 billion liters, up from 301 million liters in H1 2016 and also a record for the period, SECEX said. Ethanol imports through the Northeast ports accounted for 88% of the total, while the balance entered through the Center-South ports and airports.
Kingsman expects imports to continue, mainly in the last quarter of the year. Over H2 2017, imports are expected to hit a record high of nearly 790 million liters, up 43% year on year.
