SAO PAULO - Brazil’s ethanol industry is looking to grab a chunk of China’s ethanol market as the Asian nation targets a 10% blend in gasoline to improve air quality, but a short-term jump in exports is unlikely, according to people following the matter.
Brazilian ethanol industry representatives were part of a trade mission organized by the Sao Paulo state government that visited China this month. The mission’s agenda included meetings with Chinese authorities and a visit to the headquarters of commodities trader COFCO, which owns four ethanol plants in Brazil.
Felipe Vicchiato, chief financial officer for Sao Martinho SA , a large Brazilian ethanol producer, said Chinese officials seemed to be serious about the 10% ethanol plan during the talks. Sao Martinho’s Chairman Marcelo Ometto was also part of the trade mission. The Chinese government would most likely seek to balance ethanol use with local production, refraining from pushing for an immediate implementation of the E10 that would necessarily spur imports, the COFCO source added.