Russia to top origin points of Brazilian diesel imports in week ending March 9

Brazilian diesel and gasoil imports are expected to decline in the week of March 3-9, with Russia to remain the main source for the barrels, according to data from S&P Global Commodities at Sea(opens in a new tab) and Platts cFlow(opens in a new tab) ship and commodity tracking software as of Feb. 28.

Brazil is expected to import around 2.1 million diesel barrels in the week ending March 9, almost 40% lower than the 3.4 million barrels expected over Feb. 24- March 2, according to preliminary data. Of the total, around 1.8 million barrels are expected to arrive from Russia.

Brazil is set to import diesel from Saudi Arabia for the second consecutive week in the period ended March 9, the data showed.

One ship carrying 307,146 barrels of diesel is expected to discharge at Suape. Additionally, the Portinary, which also loaded in Saudi Arabia, was waiting to discharge 820,910 barrels at the port of Suape, having previously been listed to arrive during the week of Feb. 14-March 2.

Of the imports expected for the week ending March 2, approximately 949,473 barrels across three ships have already been discharged at Brazilian ports. Two ships carrying around 1.1 million barrels are in transit or waiting for discharge and are expected to arrive by March 2.

Three ships carrying a total 808,403 barrels were delayed as of Feb. 28 and were expected to arrive by March 9.

The week ending March 9marked the fourth consecutive week where Brazil did not import diesel from the US, the data showed.

Platts, part of S&P Global Commodity Insights, assessed the spread between US and all-origin ultra-low sulfur diesel in South Brazil at 5.26 cents/gal on Feb. 27, lower than the 6.15-cent/gal a week prior.

Santos sees highest import volume

The Port of Santos in São Paulo state was the top importing port during the week of Feb. 24-March 2, and it is expected to receive 871,435 barrels of products over March 3-9.

Platts assessed ULSD, or S10-grade diesel, at the port of Santos on an FCA basis at Real 3,702.60/cu m, which was a Real 50/cu m discount to Petrobras' EXA Paulínia prices, on Feb. 27.

The ULSD Santos import parity price was Real 3,671.79/cu m on Feb. 27, having peaked at Real 4,270.45/cu m on Jan. 17, according to Platts assessments. The latest IPP was Real 30.81/cu m lower than Petrobras' EXA Paulínia prices.

Petrobras prices' averaged a Real 50/cu m discount to imports in Brazil, Brazilian fuel importer association Abicom said in a Feb. 28 report, meaning the diesel domestic offering was more competitive than imports.