SAO PAULO (Dow Jones)--Brazil's ethanol consumption shows no sign of slowing, with ethanol makers likely to produce over 1.45 billion liters of the alternative fuel in October, a record, said the Union of Sugarcane Industries on Tuesday.
Brazil makes ethanol from sugarcane.
Low prices at gas stations have Brazilians filling up their flex-fuel cars with ethanol more than usual. Brazil also mixes around 22% of its anhydrous ethanol with gasoline and also has a pure hydrous ethanol option, or E100, at filling stations nationwide.
Last week, market analysts at consulting group, Datagro, estimated that the country would fall short of ethanol by April if prices did not increase by at least 20% to 25% by early 2008 to curb consumption.
Around 54% of Brazil's 415 million metric ton sugarcane crop (2007-08) will be turned into ethanol. The Union of Sugarcane Industries, or Unica, still estimates an 18.8 billion liter ethanol production total this season.
Sugar production is put at 25.1 million tons.
As of Oct. 15, 349 million tons of sugarcane have been crushed, or 12% more than the same period last year. Of the total, 21.9 million tons of sugar were made and 15.9 billion liters of ethanol were produced from the crop, Unica said.
Unica estimates that sugar milling companies will have finished processing sugar and ethanol from the 2007-08 crop by Wednesday in the center-south region.
Brazil is the No. 1 ethanol exporter.
Source: Kenneth Rapoza, Dow Jones Newswires, 5511-3145-1488, kenneth.rapoza@dowjones.com