São Paulo – Exports from Brazil to Arab countries grossed US$ 1.1 billion in May, up 12.4% from May 2014, according to data from the Ministry of Development, Industry and Foreign Trade.
Sales increased significantly for some of the top-selling products, like sugar (51.7%), soybeans (41.5%), frozen beef (59.8%), aluminum oxides (64.7%), gold (US$ 34 million, against zero in May 2014) and soya bran (148%).
Regarding foodstuffs, the Arab Brazilian Chamber of Commerce CEO Michel Alaby remarked that higher sales stem from the Arab world’s need to build inventories for the Ramadan, the Islamic calendar month when believers go on a fast from dawn to sunset, but traditionally have major collective meals at night.
“In the case of sugar, consumption of sweet foods is strong [in this time of year], and as for meat, there is a concern over ensuring a supply,” Alaby said. Regarding soy, he noted that the month coincides with the beginning of shipping of the 2014/2015 harvest.
The Muslim calendar is a lunar calendar, therefore religious and commemorative days change in relation to the Gregorian calendar. This year, Ramadan is set to begin on June 18th, but in 2014 it started on June 28th, and therefore Ramadan-related imports began earlier in 2015, and should be computed into statistics for the current month.
“The first days of June should see a high volume of food exports,” said Alaby. Data for the current month, however, will only be released by the Ministry of Development, Industry and Foreign Trade in July.
Regarding gold, which only the United Arab Emirates imports from Brazil, the executive also cites Ramadan, since gifts are often exchanged, including jewelry, during Eid Al-Fitr, the holiday that marks the end of the fasting period. The country is also a major trading hub for precious metals, and gold items are widely sought-after in the Arab world as investment.
The UAE and Qatar accounted for all exports of aluminum oxide from Brazil to Arab countries. The product is used as an industry input.
Foreign sales also grew for products such as chassis and engines for buses, chemical wood pulp, soluble coffee and cast iron.
Sales increased to Saudi Arabia, the UAE, Egypt and Algeria, the four leading Arab destinations for Brazilian exports, and to Tunisia, Iraq, Mauritania, Syria, Palestine, Djibouti, Sudan and Somalia. Conversely, exports declined to Oman, Qatar, Morocco, Lebanon, Jordan, Kuwait, Yemen, Libya, Bahrain and the Comoros.
Year-to-date
Exports from Brazil to Arab countries increased in May, but not by a rate high enough to offset the plummeting year-to-date sales. From January through May, exports grossed nearly US$ 4.7 billion, down 7.2% from January to May last year.
On the other hand, Brazil’s imports from Arab countries amounted to US$ 618 million in May, down 43.7% from May 2014. In the first five months of 2015, imports added up to slightly over US$ 2.6 billion, down 40.7%.
The leading import items year-to-date through May were crude oil, naphtha, aviation fuel, liquefied natural gas and urea. The leading product suppliers to Brazil were Saudi Arabia, Algeria, Qatar, the UAE and Iraq.
*Translated by Gabriel Pomerancblum
