US leads gasoline imports to Brazil’s main ports in August

Gasoline coming from the US led import volumes arriving in Brazil's main ports during August, according to data from port line-ups, sources and S&P Global Commodities at Sea.

US gasoline totaled 70,931 cu m, followed by volumes from the Netherlands (64,098 cu m) and Russia (64,014 cu m).

The port of Suape led import gasoline arrivals, followed by Rio de Janeiro, Manaus, Santos and Itaqui.

The Brazilian Northeast, short on gasoline, saw a reduction in import entries for the month, even as the arbitrage window was open for 21 days, according to reports from the Brazilian Association of Fuel Importers, or Abicom. Participants were reportedly sufficiently stocked and downstream demand dragged throughout the month.

Spot market negotiations at the Suape and Itaqui ports were slow compared with the previous month, with trades concentrated in the first half of August.

In the Southeast, which is long in gasoline, competitive volumes reportedly injected some liquidity at the Santos and Paranagua ports throughout the month. Not all participants, however, accessed that, as competitors in the market questioned its quality and origin.

Naphtha arrivals were also scarcer this August compared with July, with 40,203 cu m coming from the Netherlands and 48,815 cu m coming from Russia.

US, Dutch volume arrivals expected for next two weeks

Import volume arrivals and cabotages were expected at the northeastern ports of Suape and Itaqui by Sept. 8, according to preliminary data. Naphtha volume arrivals from Russia were also expected at an unspecified port in Brazil.

The Brazilian gasoline import window has been closed for the past day, according to an Aug. 29 report from Abicom. Looking at Brazil's six main transport fuel trading regions, Abicom considers the gasoline import arbitrage unfavorable, with domestic prices on average Real 50/cu m lower than import parity prices.

Platts, part of S&P Global Energy, assessed gasoline import-parity prices at the port of Suape at Real 2,608.20/cu m on Aug. 28. Prices at the port have been on an uptrend since Aug. 13, when they reached the month-low at Real 2,472.61/cu m.