June 19th – Biodiesel in Argentina

June 19th 2022

Biodiesel in Argentina

National Holidays: Monday June 20th, extra-long weekend

River Parana Draft Forecast:
The surge is now wearing off. River levels will descend, but the low water is not expected to be as low during 2021.

Grains and Markets:
Brazil has purchased 78 thousand tons of wheat from US port/s for shipment dates during September 2022.Jordan has purchased 60,000 tons of barley from Viterra loading 1st half September. Origin so far undisclosed.

Biodiesel in Argentina:
Due to market distortions caused by Government regulations there is a shortage of diesel fuel over most of the country. This is compromising nearly all transport and logistical activities. Trying to resolve the situation the Government has now allowed an increase in the “cut” or proportion of biodiesel that is included with the fossil fuel. This may affect biodiesel supplies for export, but as soon as the supply returns to “normal” this ought to be redressed. There has been very strong pressure from the Oil Majors during the whole year to reduce the Biodiesel proportion.

Gas pipeline Update:

The first stage of the gas pipeline from Vaca Muerta, north-western Patagonia, to central Argentina (Salliquelo) has been awarded to SIAT (Techint). This stage of the pipeline is 558 kilometers in length. It has now transpired that the main manufacturing plant for the pipes in Argentina is a site close to Buenos Aires (Valentin Alsina). The pipes will be rolled there for final delivery to the construction site. As the steel required for the pipe manufacture is not available the steel plates to be used for rolling will have to be brought from Techint’s facility in Brazil. This as well manufactured pipes that will also be supplied from Brazil. Both of these imports are likely to be carried by sea.

The first stage of the pipeline is detailed in the yellow box.

Necochea, barley:
The export trade of barley from Necochea has taken a huge step forward this year.
Feed barley totaling 1,300,000 tons has been exported during the fist half of 2022. This is a 60 per cent increase over the same period last year when 823,018 tons were exported. Malting barley has also taken a leap with 480,000 tons exported during the same period. During the whole of 2021 a total 479,000 tons were exported.
The latest new reported destinations are India, Taiwan and Colombia.

The port administration at Bahia Blanca has reduced the “entry” tariffs for vessels that stop at the Roads for lifting bunkers only.
This is an 18 per cent reduction, and it reflects as a reduction of about USD 3,500 on a Capesize, down from USD 26,000 to USD 22,500, and a reduction of USD 2,000 on a Panamax, down from USD 16,000 to USD 14,000.

Weather over the Long Weekend. Bunker deliveries at Zona Comun:

Some rough weather affected deliveries during the day today (Sunday) but since mid afternoon operations have resumed. Some delays are likely Tuesday and Wednesday.

Bahia Blanca stevedores:
Stevedores are stopping work for one to two hours during each six-hour shift in protest claiming a Covid-19 bonus. This action is has now been ongoing.

Will keep you posted.

Best regards,

Antares Servicios Maritimos S.A.

For more information

Local News