São Paulo – Revenues from Brazilian exports to Arab countries dropped 21.33% in September from a year ago, according to data from the Ministry of Development, Industry and Foreign Trade compiled by the Arab Brazilian Chamber of Commerce. Last month, the country grossed USD 999.2 million from exports to Arab countries, down USD 271 million from USD 1.2 billion in September 2014.
Sales volumes to the region also declined, although by a lower rate: 12.8%. Brazil shipped 3.7 million tons of products to the Arab World in September this year, and 4.3 million tons in September 2014. Arab Chamber CEO Michel Alaby notes that the prices of a major export product, meats, went down in the month. This contributed to an even sharper drop in revenues than in shipped volume.
Some of the cornerstone products exported from Brazil to Arab countries saw a decline in both sales volume and revenues, such as ores and sugar. Meat exports dropped only in revenue, with volume virtually flat at a 0.38% increase.
Alaby also attributes the decline in sales to Arabs in September to the end of inventory replenishment in the region. The Arab world stocks up in the months that follow Ramadan, and since the Muslim fasting period happened earlier this year than in 2014, the CEO believes they stopped buying earlier as well. This explains the decline year-on-year in September.
The United Arab Emirates imported the most Brazilian goods, revenue-wise, followed by Saudi Arabia, Egypt, Algeria and Iraq. Imports by the former three countries dropped 16.5%, 4% and 38%, respectively, but Algeria’s imports from Brazil were up 33% and Iraq’s were up 215%. The top-selling products were poultry, sugar, maize, iron ore and beef.
In the first nine months of the year, revenues from Brazilian exports to Arab countries dropped 7% from a year ago, to USD 9.08 billion. Shipped volume was up 19% to 34.1 million tons.
Imports
Brazil’s imports from Arab countries were down 62.4% in value and 44% from January through September, to USD 367 million and USD 4.7 billion, respectively. Import volume dropped 34% last month and 16% year-to-date. Brazil imports mostly oil, oil products and fertilizers from that part of the world.
*Translated by Gabriel Pomerancblum
