MERCOSUR: Market for Processed Petroleum Oils and Distillates 2024

Market Size for Processed Petroleum Oils and Distillates in MERCOSUR

In 2022, the MERCOSUR market for processed petroleum oils and distillates increased by 8.4% to $X, rising for the second year in a row after two years of decline. Over the period under review, consumption, however, continues to indicate a mild contraction. Over the period under review, the market attained the maximum level at $X in 2014; however, from 2015 to 2022, consumption remained at a lower figure.

Production of Processed Petroleum Oils and Distillates in MERCOSUR

In value terms, processed petroleum oils and distillates production shrank slightly to $X in 2022 estimated in export price. In general, production recorded a abrupt slump. The pace of growth was the most pronounced in 2018 with an increase of 8.9%. Over the period under review, production reached the peak level at $X in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

Exports of Processed Petroleum Oils and Distillates

Exports in MERCOSUR

In 2022, the amount of processed petroleum oils and distillates exported in MERCOSUR rose remarkably to X tons, picking up by 7.7% against 2021 figures. Total exports indicated a perceptible increase from 2012 to 2022: its volume increased at an average annual rate of +3.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +20.8% against 2020 indices. The most prominent rate of growth was recorded in 2016 with an increase of 21% against the previous year. The volume of export peaked in 2022 and is likely to see steady growth in the near future.

In value terms, processed petroleum oils and distillates exports soared to $X in 2022. Overall, exports showed pronounced growth. The pace of growth was the most pronounced in 2018 with an increase of 54% against the previous year. The level of export peaked in 2022 and is expected to retain growth in the near future.

Exports by Country

Brazil represented the main exporting country with an export of about X tons, which recorded 60% of total exports. Colombia (X tons) ranks second in terms of the total exports with a 17% share, followed by Ecuador (10%) and Peru (8.4%). Argentina (X tons) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to processed petroleum oils and distillates exports from Brazil stood at +7.8%. At the same time, Ecuador (+8.1%) and Peru (+2.8%) displayed positive paces of growth. Moreover, Ecuador emerged as the fastest-growing exporter exported in MERCOSUR, with a CAGR of +8.1% from 2012-2022. By contrast, Colombia (-2.9%) and Argentina (-5.4%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Brazil and Ecuador increased by +19 and +3.4 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) remains the largest processed petroleum oils and distillates supplier in MERCOSUR, comprising 64% of total exports. The second position in the ranking was held by Peru ($X), with an 11% share of total exports. It was followed by Colombia, with a 9% share.

From 2012 to 2022, the average annual growth rate of value in Brazil amounted to +9.3%. In the other countries, the average annual rates were as follows: Peru (-2.7% per year) and Colombia (-8.8% per year).

Export Prices by Country

The export price in MERCOSUR stood at $X per ton in 2022, jumping by 33% against the previous year. In general, the export price, however, continues to indicate a slight shrinkage. The level of export peaked at $X per ton in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Peru ($X per ton), while Ecuador ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+1.4%), while the other leaders experienced a decline in the export price figures.

Imports of Processed Petroleum Oils and Distillates

Imports in MERCOSUR

Processed petroleum oils and distillates imports surged to X tons in 2022, growing by 23% against 2021 figures. Over the period under review, imports enjoyed resilient growth. The pace of growth was the most pronounced in 2021 when imports increased by 80%. Over the period under review, imports reached the maximum in 2022 and are likely to see gradual growth in years to come.

In value terms, processed petroleum oils and distillates imports skyrocketed to $X in 2022. Overall, imports recorded pronounced growth. The pace of growth was the most pronounced in 2021 with an increase of 59% against the previous year. The level of import peaked in 2022 and is likely to continue growth in years to come.

Imports by Country

In 2022, Brazil (X tons) was the key importer of processed petroleum oils and distillates, comprising 58% of total imports. Chile (X tons) took a 12% share (based on physical terms) of total imports, which put it in second place, followed by Peru (6.7%), Colombia (6.5%), Argentina (6.2%) and Ecuador (5.8%). Venezuela (X tons) followed a long way behind the leaders.

Brazil was also the fastest-growing in terms of the processed petroleum oils and distillates imports, with a CAGR of +15.0% from 2012 to 2022. At the same time, Peru (+12.2%), Ecuador (+7.5%), Chile (+6.7%), Argentina (+6.3%), Colombia (+5.2%) and Venezuela (+4.9%) displayed positive paces of growth. While the share of Brazil (+17 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of Ecuador (-2.3 p.p.), Argentina (-3.4 p.p.), Colombia (-4.7 p.p.) and Chile (-5.9 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) constitutes the largest market for imported processed petroleum oils and distillates in MERCOSUR, comprising 41% of total imports. The second position in the ranking was held by Chile ($X), with an 18% share of total imports. It was followed by Argentina, with an 11% share.

In Brazil, processed petroleum oils and distillates imports increased at an average annual rate of +3.3% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Chile (+5.0% per year) and Argentina (+5.9% per year).

Import Prices by Country

The import price in MERCOSUR stood at $X per ton in 2022, surging by 14% against the previous year. Over the period under review, the import price, however, saw a abrupt slump. The most prominent rate of growth was recorded in 2018 an increase of 31%. The level of import peaked at $X per ton in 2012; however, from 2013 to 2022, import prices remained at a lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Venezuela ($X per ton), while Brazil ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Venezuela (+13.9%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform