Platts launches Brazil ULSD FCA main port assessments Dec 2

Platts, part of S&P Global Commodity Insights, has launched ultra-low sulfur diesel assessments for the Brazilian domestic market, effective Dec. 2, 2024, as part of its ongoing commitment to provide greater price transparency to emerging markets.

These daily assessments reflect the outright value of imported ULSD, also referred to as S10-grade diesel in Brazil, at the country's four main ports of destination: Itaqui, Suape, Santos and Paranaguá.

This follows a subscriber note announcing the launch of these new assessments published Nov. 26, here: Platts to launch Brazil ULSD FCA main port assessments on Dec 2 | S&P Global Commodity Insights .

Platts understands that S10-grade diesel at these four locations typically trades on an FCA basis as a differential to the underlying Petrobras refinery posted price referenced for that region. The assessments are published in both Brazilian Real per cubic meter and US cents per gallon, along with their monthly averages.

In line with market feedback, the assessments reflect spot transactions for prompt cargoes between 300-2,000 cu m in volume, for delivery up to seven days forward from the date of publication.

The assessments consider market information reported to Platts and published as heards throughout the day, including firm bids and offers, trades, and indicative values, as well as any other data deemed relevant to the assessment process. The daily assessments reflect a 4:30 pm Sao Paulo time market close and follow the Platts Sao Paulo publishing schedule.

The new Brazil ULSD FCA assessments complement Platts' existing ULSD DAP Brazil cargo assessments and import parity price calculations at the main ports and distribution regions in Brazil. More details can be found on its online methodology guide here: americas-refined-oil-products-methodology.pdf .

The Brazilian domestic spot fuels market has seen increased competition in recent years, especially after state-owned integrated energy company Petrobras started increasing its adherence to international prices, in conjunction with divesting its distribution business BR Distribuidora (now Vibra Energia).

ULSD imports into Brazil also became more prominent after Western sanctions on Russian oil products following its invasion of Ukraine in 2022, with Russian diesel flowing into Brazil at more competitive prices and becoming the main import origin. Brazil has imported 100.7 million barrels of diesel/gasoil in 2024 through November, with Russian-origin material accounting for 59.2 million barrels, while only 21 million barrels were imported from the US, according to preliminary data from S&P Global Commodities at Sea.

Details of Platts Brazil ULSD FCA assessments are as follows:

The assessments are published in Latin American Wire, US Marketscan and on Platts Global Alert and Platts Refined Products Alert fixed pages 24, 164, 165, 470, 471, 1631, 1638 and 1639.

Please send any further questions, comments or feedback to americas_products@spglobal.com and pricegroup@spglobal.com.

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