São Paulo – Brazil’s sales to Arab countries remained stable in the first half of 2013, as against the same period in 2012. They rose 1.27% in volume but fell 0.38% in revenue, according to figures disclosed by the Ministry of Development, Industry and Foreign Trade, compiled by the Arab Brazilian Chamber of Commerce. Shipments totalled 17.3 million tons and revenues generated from them were US$ 6.56 billion. In the first six months of last year, the volume was 17.1 million tons and revenues totalled US$ 6.58 billion.
"The lower revenues were offset by an increase in the quantities traded," said the director general of the Arab Brazilian Chamber, Michel Alaby. On the possibility of improving these numbers in the coming months, the executive says there is a prospect of entrepreneurs seeking to increase exports due to the competitiveness achieved by the appreciation of the US dollar against the Brazilian real. There are, however, no market estimates for higher commodity prices, leaving no room for expectation of a larger increase in sales revenues to the Arabs.
In June alone, Brazilian exports to the Arab world declined 27% in volume and 7.36% in revenue over the same month of 2012, to 2.1 million tons and US$ 980 million. The decrease was primarily due to sales of iron ore, which had a decrease of 27.8% in revenue and 34.03% in volume. Alaby states that this decline is worrying, since smaller purchases of ores mean less steel production and, consequently, lower economic activity.
In June, revenues from sales of sugar also fell, by 3.62%.Exports rose 15.20% in volume, however, signalling that Brazil sold the product to the Arabs at lower prices. Exports of meat rose 6.8% in volume and 18.33% in revenues, indicating higher prices. Ore sales totalled US$ 154 million in June, sugar sales totalled US$ 274 million and meats totalled US$ 360 million. These three items are responsible for most of the Brazilian export basket to the Arab world.
From January to June, the main goods sold were meats, sugars, ores and grain. There was an increase in revenues from exports of meat and sugar, 10.6% and 10.05%, respectively, but falls in ores and grains, with 9.79% and 9.32%, respectively. The Saudis were the largest market in the Arab world, with US$ 1.4 billion in purchases, followed by the United Arab Emirates, with US$ 1.1 billion, and Egypt, with US$ 906 million. Of the three, only Egypt decreased imports – by 9.3% over the first half of 2012.
Brazilian imports of Arab products also fell, 7.34% in the year to June, with US$ 5.6 billion. The fall in June, alone, however, was much higher: 53%. Both in the month and in the first half, the main products supplied were oil and oil products. Brazil also purchased fertilizer from the Arab world in significant amounts.
*Translated by Mark Ament
