US asphalt imports to Brazil reach 5-year high

Brazilian asphalt imports from the US reached their highest level in the past decade in May after drier weather and competitive prices boosted demand.

The US was the largest source of Brazilian asphalt imports in May, contributing to nearly 12,000 metric tonnes (t) or 61pc of all imports, according to Siscomex import and export data.

The last time Brazil imported so much from the US was in January 2023, when 10,800t arrived at Brazilian ports.

In April, the US Gulf's premium over Mediterranean asphalt reached its narrowest point in 2024 at about $7/st, which can explain why imports rose in May.

Precipitation levels were also 60pc lower in some regions of the country during April and May, according to Brazil's National Meteorology Institute, which boosted paving projects.

Total asphalt imports in Brazil increased by almost 10 times in May compared with April. Asphalt imports totaled 19,500t in May, which is 28pc higher compared with May 2023.

Imports from January to May were almost 80,000t, 46pc more than the same period in 2023. This is because of municipal elections in October, which results in more road projects to appeal to voters.

Russia was the source for around 5,300t of asphalt imports in May. Most Russian imports tend to be polymer modified asphalt (PMA), a dry bulk product that costs on average 15pc more than liquid asphalt because of the energy costs required to reheat it to a liquid state.

Although it costs more, solid asphalt is used as an alternative in markets without the infrastructure to receive and store liquid asphalt, such as in southern Brazil.

By Julio Viana