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The spirtovikov USA expanding capacities, despite the vague future
Companies rely on exports and strong domestic demand
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Some U.S. producers of ethanol in a hurry to increase capacity, boosting production to new highs, even as rising corn prices reduce margins, and the national program for biofuels increases uncertainty.

Betting on exports and strong domestic demand for fuel, four companies completed the extension and projects that will add 375 million gallons based on corn ethanol this year. This is the equivalent of 24,000 barrels per day.

This figure is a drop against the national production of 1 million barrels per day, and small compared to the extension of recent years, when companies rushed to develop after Washington launched the renewable fuel program back in 2005.

However, new threads are expected to increase production to new records at a time when inventory is close to a three-year high and the margin starts to deteriorate because of rising prices.

The program of biofuels have entered an era of long uncertainty. Agency for environmental protection in may unveiled the long-awaited targets for biofuels by 2016.

Criticism of the controversial policy increases. Oil refineries are threatening lawsuits, demanding change program, U.S. lawmakers consider the issue of deprivation of funding for the program.

Despite this, Marquis Energy LLC persistently promoting the project to double capacity at its plant with a capacity of 150 million gallons in Illinois. The company announced the availability of emerging markets and increase the demand for gasoline.

Despite the fact that consumption remains stable at the moment, competitors are looking at expanding with caution.

Expectations of demand growth - at least in the short term is questionable. Oil companies claim that the use of ethanol in gasoline is limited to 10% predict that the demand for gasoline in the U.S. will rise to 138,7 billion gallons this year.

The margin is already below 20 cents per gallon, which is half the average for eight years at 40 cents per gallon and below the record$ 2 per gallon last year, according to the University of Iowa.

Production of the enterprise will be profitable, while the price of ethanol, which now amount to 1,60$ per gallon will remain above 1$.

But many manufacturers are worried that as soon as a summer season car trips is over, stocks will start to rise again, prices will fall, and high-cost production will have to reduce or suspend.

 

 

 

 



Translated by the service "Yandex.Translation"
Источники: Agro2b
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