Platts to launch Brazil ULSD FCA main port assessments on Dec 2

Platts, part of S&P Global Commodity Insights, will launch 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 will 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.

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 will be published in both Brazilian Real per cubic meter and US cents per gallon, along with their monthly averages.

In line with market feedback, Platts will 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 will 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 will reflect a 4:30 pm Sao Paulo time market close and will follow the Platts Sao Paulo publishing schedule.

The new Brazil ULSD FCA assessments will complement Platts existing ULSD DAP Brazil cargo assessments and import parity price calculations at the main ports and distribution regions in Brazil.

The Brazilian domestic spot fuels market has seen increased competition in recent years, especially after state-owned integrated oil 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 soon becoming the main import origin. Brazil has imported 97.7 million barrels (9.3 million cu m) of diesel/gasoil in 2024 through October, with Russian-origin material accounting for 58.3 million barrels, while only 19.2 million barrels were imported from the US, according to data from S&P Global Commodities at Sea.

Details of Platts Brazil ULSD FCA assessments are as follows:

The assessments will be 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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