As ethanol prices tumble amidst rising stockpiles and storage capacity becoming increasingly limited, the prospect of sugar output increasing seems likely, according to Bloomberg.
Output of HFCS (high-fructose corn syrup) in China is set to jump 7% this year, according to commodities information service Zhuochuang, as cheap corn from a sell-down of the country’s giant stockpiles encourages producers to boost output or restart idled capacity, reported Reuters.
First quarter data on biofuels output in Argentina suggests that it will be a record according to the National Institute of Statistics and Censuses (INDEC).
Combination of reduced supply from mills and weak demand has resulted in hydrous-ethanol market shrinking in Brazil. Since the beginning of the 2016/17 season in April through July, sales of hydrous ethanol from mills to distributors and then to retail have fallen by 15% compared with the same period last year, according to Valor Economico.
Simons noted that though domestic oil demand is expected to keep falling to 3.1 million barrels per day (bpd) in 2017, production growth will increase from 2.5 million bpd last year to 3.4 million bpd in 2021.
CGB said some sugar makers had contracted extra acreage with farmers with a view to stocking some 2016 production to sell after the abolition of European Union quotas in October 2017, CGB Director Alain Jeanroy told reporters.
According CCEE data, from January to August 2015, bagasse-based cogen units produced 13,740 GWh for the national grid, an increase of 14% compared to the same period last year.
The development follows on from an A$11 million (US$9 million) boiler upgrade completed in May this year at its Farleigh Mill. Upgrading the No 4 Boiler involved the replacement of the boiler heat recovery system ‘back-end’, and refurbishment of dust arrestors and the chimney.
“We haven’t had any official forecast about how serious the problem could be. However, we expect to have 80-100 mln tonnes of sugarcane at worst if the dry spell lasts longer,” he said. That would be equivalent to 8-10 mln tonnes of sugar.
Last year the sector had an installed cogen capacity of 215 MW and produced 1,200 GWh. The additional capacity will come from two plant expansion projects this year as part of efforts to improve energy efficiency.