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Imports of Russian diesel by Brazil this month are expected to jump to 53% of the total imports of the product by Brazilians, compared to just 0.2% in April 2022, as fuel from Russia is reaching lower values in the country's market, he projected. this Tuesday the Argus agency, specialized in prices and consultancy services.
The estimate was made considering a forecast landing of Russian diesel brought by 10 to 15 ships, which generally carry around 50,000 cubic meters, Argus diesel market specialist Gabrielle Moreira told Reuters.
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“It is difficult to compete, Russian diesel arrives below the sales price of national refineries and below the value of the product imported from other sources”, said Moreira, during an Argus event, in São Paulo.
The data gathered by Argus also indicates that the Russian product is taking over the market from North American diesel, which traditionally accounts for the majority of the product imported by Brazil, which purchases around 30% of its needs abroad.
According to an estimate by the president of the Brazilian Association of Fuel Importers (Abicom), Sérgio Araujo, Russian diesel arrives in Brazil at between 20 and 30 cents per gallon cheaper compared to imports from other sources.
The Russian differential represents 5% of the value of the imported product, he said when questioned by Reuters.
“Imports of Russian diesel should continue to grow for at least the next 12 months,” he said after speaking at the event.
He said that Russia has increased diesel exports to Brazil in the face of embargoes on the Russian product by Europe, which before the war in Ukraine was an important buyer.
Brazil has no restrictions on imports of Russian diesel, despite existing international sanctions on Russian product in other parts of the world.
However, some companies, for reasons related to compliance rules, avoid purchasing fuel from Russia, fearing financial sanctions.
According to seminar participants, regional fuel distributors in Brazil, many of them smaller, have taken advantage of the good prices of the Russian product to increase imports.
Acelen's marketing director, Josué Bohn, said that the Mataripe refinery, owned by the company in Bahia, has not yet been impacted by greater imports of the Russian product.
But he did not rule out that this could happen in the coming months, as foreign purchases increase.
However, Bohn highlighted that, as a refiner in Brazil, Acelen will not lose market share. “We will try to be competitive,” he told Reuters during the event.
In 2022, Brazilian diesel imports were still dominated by the North American product, which took 57.2% of the market, while Russia grabbed just 1%, according to government data compiled by Argus.
In the first quarter of this year, Russia's share increased to 13.2%, while the US accounted for 33.1% of the diesel imported by Brazil.
The Russian product has entered mainly via the port of Paranaguá, helping to supply the market in the south of the country. But the port of Santos will start receiving the product in April, according to data from Argus.
Source: Notícias Agrícolas
