Brazil Flooding Impacts the Downstream Sector

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Researched by Industrial Info Resources (Sugar Land, Texas)--The heavy rains in Brazil's Rio Grande do Sul have deeply affected the region, causing chaos and disrupting various industries. Numerous companies have been forced to suspend operations, and the downstream sector is facing the impact.

The ongoing rainstorm, which began in early May, shows no signs of abating. Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil), on May 7, had to shut down the fluid catalytic unit and associated facilities in the cracking area at its REFAP Refinery due to difficulties in fuel shipping and transportation. Consequently, the refinery's operational capacity decreased in approximately 35% of its normal capacity. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refinery Plant Database can click here for more details on the refinery.

In contrast, Refineria de Petroleo Riograndense SA, which runs the Riograndense Refinery (click here for plant profile), reports no significant impact as of yet. However, the company remains vigilant, closely monitoring the situation and preparing for potential shifts in demand that may require adjustments in refinery operations, including rate reductions or even temporary shutdowns.

With forecasts predicting intensified rainfall in the coming days, downstream companies are actively assessing strategies to manage any possible impacts on demand, storage, and logistics. They are preparing to adjust their operational rates and procedures accordingly to mitigate further disruptions.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).