São Paulo – Machinery exports from Brazil have increased in the first half this year over the same period of 2009, and at least four Arab countries have collaborated with the performance. Foreign sales by the industry have grown by 6.5% during the period, to reach US$ 4.04 billion, and countries whose purchases have risen include Saudi Arabia, the United Arab Emirates, Algeria and Sudan. These four Arab countries are on the list of 50 leading importers of Brazilian machinery in the first half, alongside Egypt, whose purchases have declined.
The Saudis ranked 24th on the list of Brazilian machinery importers from January until June this year, and spent US$ 33.7 million as against US$ 13.2 million in the same period of 2009. The Emirates ranked 31st, with US$ 22.9 million as against US$ 16.8 million, Algeria ranked 32nd, with US$ 21.8 million as against US$ 8.6 million, and Sudan imported US$ 7.9 million as against US$ 6.2 million, occupying the 48th position. Egypt was the 42nd leading importer, however its purchases have dropped from US$ 15.8 million to US$ 12.3 million.
According to the president of the Brazilian Machinery Manufacturers Association (Abimaq), Luiz Aubert Neto, the Arab market buys mostly agricultural machinery and implements from Brazil. “And now we are starting to sell machines for the oil and gas industry,” says Neto, adding that in the Arab world, Algeria is beginning to buy machinery for this industry from Brazilian manufacturers.
The main buyers of Brazilian machinery in the first half this year were the United States, with US$ 647 million, followed by Argentina, Mexico, the Netherlands and Chile. United States and Argentina, however, have reduced their imports in comparison with the same period of 2009, whereas Mexico, the Netherlands and Chile have purchased more. The highest rate of growth among the five was recorded in sales to Chile, which rose by 53% to reach US$ 191 million.
Despite the increase in exports, the sector is not pleased with its international market performance. Neto highlights that the increase in foreign place has taken place in comparison with 2009, which was a very bad year. “There will be growth in whatever we compare with 2009,” he said. According to the Abimaq, in comparison with the first half of 2008, for instance, exports have dropped by 24.6%. In 2008, the Brazilian machinery and equipment industry posted revenues of US$ 5.3 billion. In 2009, the figure was US$ 3.7 billion.
The president of the Abimaq claims that the exchange rate is robbing the segment of its foreign market competitiveness. Imports, on the other hand, are growing fast. From January until June this year, Brazil imported the equivalent of US$ 10.6 billion in machinery, representing growth of 14.6% over the US$ 9.2 billion recorded in the same period of last year. The United States are the leading suppliers, Germany ranks second, and China ranks third. China, however, should surpass Germany before the end of the year, according to Neto.
*Translated by Gabriel Pomerancblum
