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U.S. ethanol exports strike volume record in February


By DOUG SCHMITZ
Iowa Correspondent

WASHINGTON, D.C. — U.S. exports of denatured and undenatured ethanol in February totaled 85.2 million gallons (mg), up 24 percent from January, which represented the highest February export volume on record, according to a Renewable Fuels Assoc. (RFA) analysis of recently released government data.
“Year-to-date exports stood at 153.9 mg – in line with exports during the same period last year and implying an annualized total of 923 mg for 2015,” Ann Lewis, RFA research analyst for regulatory and technical priorities, said of the record, which surpassed the February 2012 figure of 76.3 mg. 
According to Lewis, Brazil received about one quarter (28 percent) of total U.S. ethanol exports in February, followed by India (20 percent), Canada (17 percent) and the United Arab Emirates (12 percent), with the Philippines, South Korea, the Netherlands and Peru among other key destinations in February.
“February exports of denatured ethanol for fuel increased 5 percent over January, rising to 25.3 mg.,” she said. “Shipments primarily moved to Canada (12.6 mg, or 50 percent), United Arab Emirates (10.0 mg, or 40 percent), South Korea (1.1 mg, or 4 percent) and Peru (1.1 mg, or 4 percent).” 
Lewis added that shipments of undenatured ethanol for fuel use were 57.2 mg in February – the second-highest level in more than three years, with Brazil being the largest destination at 23.8 mg (42 percent). 
“India (16.9 mg, or 30 percent) and the Philippines (7.3 mg, or 13 percent) were other major players,” she said. “February exports of undenatured ethanol for non-fuel, non-beverage more than doubled from January to 710,355, while denatured ethanol for non-fuel, non-beverage use slipped back to 2.0 mg.”
In addition, the United States imported 2.6 mg of fuel ethanol in February after importing less than 30,000 gallons the prior month, with total 2015 imports trending lower than last year at this time. 
“Nearly all undenatured ethanol was sourced from Guatemala (1.8 mg), while most denatured ethanol originated from Lithuania (579,224 gallons, or 77 percent) and Russia (164,856 gallons, or 22 percent),” Lewis said.
“With February net exports hitting 82.6 mg, the United States has again enjoyed a net exporter status, continuing the trend since September 2013.”
Lewis said February exports of U.S. distillers’ dried grains with solubles (DDGS) – the animal feed co-product manufactured by dry mill ethanol plants – rose 13 percent to the highest monthly level in five months at 803,203 mt as the Chinese market continued to recover. 
But exports to Com-munist China remain at about half the level of before the market collapse, she added. “Exports to the rest of the world, however, have been on a four-month slide, decreasing by 30 percent during that period,” she said. “In February, China managed to recapture the top market share for the U.S. DDGS, pulling in 272,220 mt (34 percent of total), while Mexico took in 222,182 mt (28 percent of total).” 
Moreover, Vietnam (48,043 mt), Canada (43,859 mt), Japan (38,621 mt) and Thailand (35,587 mt) rounded out the top customers, Lewis added, with year-to-date exports standing at 1.512 million mt, “implying an annualized 9.07 million mt in DDGS exports for 2015.”
Bob Dinneen, RFA president and CEO, said the U.S. ethanol industry is “working diligently to increase demand for this product abroad,” with U.S. ethanol now being exported to all six continents. “It has been rewarding to see countries all over the world embrace the U.S.-produced high-octane fuel, which has also been the lowest-cost liquid transportation fuel found anywhere in the world,” he said.
4/16/2015