Platts Analytics Analysis Shows That the Country Needs to Stay Alert to Meet Demand and That the Demand for Biodiesel Should Also Increase
São Paulo, May 21, 2021 – Diesel demand in Brazil is expected to grow by 4.4% in 2021, driven mainly by the transportation of agricultural commodities and household items. This is indicated by S&P Global Platts Analytics, the leading independent provider of information and benchmark prices for the commodities and energy markets.
In a market analysis, Platts Analytics assesses that diesel demand in the country remained resilient even during the pandemic in 2020 and that, in March 2021, a period marked by the lockdown of important regions such as the state of São Paulo, the demand for fuel was significant, accumulating a 16.3% increase for the year (158,000 barrels more per day).
To meet the growing diesel demand, Platts Analytics suggests that Brazil increase its domestic production or boost imports, or take both initiatives, especially amid an uncertain scenario generated by risks of new waves of COVID-19 infections that could hinder growth forecasts.
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Biodiesel – The analysis also includes an assessment of the biodiesel market in the country, which has seen demand increase since the beginning of the pandemic. Amid the rising demand for soybeans, which drove commodity prices to record levels, the price paid for biodiesel also skyrocketed, with the government intervening on several fronts. In March of this year, the biodiesel mandate rose to 13%, but soon after was reduced to 10%, with the reduction extended until August 2021. Following the announced reduction, Platts Analytics estimates a 2.3% increase in biodiesel demand for the year (113,000 barrels per day more).
About S&P Global Platts – The leading independent provider of information and benchmark prices for the commodities and energy markets, S&P Global Platts has clients in more than 150 countries who rely on the company’s expertise in news, pricing, and analysis to provide greater transparency and efficiency to the markets. S&P Global Platts’ coverage includes oil and gas, energy, petrochemicals, metals, agriculture, and maritime transportation. S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make confident decisions. For more information, visit www.spglobal.com/platts/pt
Source: Edelman Brasil

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