São Paulo – Exports from Brazil to Arab countries increased in volume year-on-year in January. Revenues, on the other hand, have declined. As per data supplied by the Brazilian Ministry of Development, Industry and Foreign Trade and compiled by the Arab Brazilian Chamber of Commerce, sales to countries like Saudi Arabia and the United Arab Emirates have doubled. Sales to Qatar were up 3,600%.
According to the Ministry’s figures, Brazil exported US$ 1.015 billion worth of products to Arab countries in January, and imported the equivalent of US$ 416.38 million. In January of last year, exports had reached US$ 1.032 billion and imports stood at US$ 910.4 million. Revenues were down 1.6%. The trade surplus on the Brazilian side has widened to US$ 598.62 million.
In January this year, Brazil shipped 3.6 million tons worth of goods to Arab countries, up 23.9% from the comparable month in 2014, when sales amounted to 2.9 million tons. Imports are down from 1.3 million tons in January 2014 to 765,400 tons in January 2015, a 41.6% reduction.
Ore was the main product shipped from Brazil to Arab countries in January: 1.8 million tons of the product were shipped, up 58.1% from January 2014. Sugar sales stood at 942,700 tons, up 32.9%. Cereals sales were down 41% to 494,000, sales of chemicals soared from 9,000 tons to 153,000 tons and meats sales were down 2%. Poultry exports were down 5.07% to 112,000 tons and beef exports were up 16.5% to 22,190 tons.
Volume-wise, Saudi Arabia was the leading importer of products from Brazil at 769,070 tons, up 104.04%. Ore was the main product purchased by the Saudis, followed by cereals, sugars and meats. Ore imports amounted to 334,000 tons, up 99% from January 2014.
The UAE imported 752,040 tons, an expansion of 166.7%. Sugar (all types), chemicals, minerals, cereals, beef and dairies were the main products purchased by the UAE. Qatar, seventh biggest importer in volumes, purchased 167,700 tons, or 3.670% more than in January last year. The main product imported was minerals.
For Arab Chamber’s CEO, Michel Alaby, buyers from the Middle East and North Africa are taking advantage of the low prices of commodities to compensate the decline in revenues of oil sales, which is the main product exported by countries from the Gulf and North Africa. “Maybe they’re using the low price of commodities as an exchange mechanism with oil’s low price”, he said. Alaby also believes in an increase of food stocks due to Ramadan. The Muslims’ sacred month will be celebrated in June.
Putting it in figures, the United Arab Emirates were Brazil’s main buyers, with US$ 266.4 million, or 51.1% more than in January of last year. Saudi Arabia was second on the list, with purchases of US$ 239 million and an increase of 19.2%. Egypt was the third one, with imports of US$ 147.7 million in January, a drop of 27.1%.
As for imports, there was a drop. Brazil purchased US$ 416.38 million from the Arab countries, 54.2% less than in January last year. In figures, the main products imported were oil and by-products and fertilizers. The main suppliers were Algeria, Qatar and Morocco. In volume, the main suppliers were Morocco, Qatar and Algeria and the main products imported were oil and by-products and fertilizers, which, together, amounted to 96% of the total in figures.
*Translated by Gabriel Pomerancblum and Sérgio Kakitani
