São Paulo – The problems that Brazil faced in ports reflected on exports to the Arab world. Sales to the region grew 3.6% in the first quarter of the year as against the same period last year, but dropped 3.3% in March as against the same month in 2012. “This is a reflex of the problem in ports,” said the CEO at the Arab Brazilian Chamber of Commerce, Michel Alaby. Revenues with exports to the Arabs reached US$ 1.1 billion in March and US$ 3.38 billion in the first three months of the year.
The Port of Santos, in the state of São Paulo, where most of the shipments from Brazil to the Arab world were focussed in March, faced cargo congestion due to the outflow of the record soy crop. The same took place in Paranaguá Port, in Paraná, the second main port for shipment from Brazil to the Arab countries. Of the US$ 1.1 billion that Brazil sold in products to the Arabs in March, US$ 411 million were via the Port of Santos and US$ 181.7 million were through Paranaguá.
The drop in exports from Brazil to the Arabs in March, however, was lower than that recorded in foreign sales by the country as a whole, which totalled 8.2%. Brazilian revenues with the foreign market in March this year totalled US$ 19.3 billion, as against US$ 20.9 billion in the same month last year.
As has been taking place, the dominance in sales from Brazil to the Arab countries was focussed on commodities, mainly agricultural, and ore. In March, sugar, chicken, iron ore, maize, beef and soy were among the main products sold to the region. A similar list, with sugar, chicken, iron ore, maize, beef and soy oil is in the list of main products shipped in the first quarter.
According to Alaby, sales mostly of food from Brazil to the Arab world may be explained by the concern of the countries in the region with food safety. “If there is greater offer than demand, you control inflation,” added the CEO. He points out that the tendency for the next quarter, the second this year, is for sector exports to rise, as the region starts storing food for Ramadan, the month in which the Muslims fast during the day but feast at night.
In March, the main destination for exports from Brazil in the Arab world was Saudi Arabia, a country that traditionally heads the list, followed by the Emirates, Egypt, Oman and Algeria. The first three reduced their purchases as against the same month in 2012, while the two latter increased. In the accumulated figure for the year, the ranking is the same, but all countries, except for Algeria, bought more than in the first three months of 2012, according to Ministry of Development, Industry and Foreign Trade figures.
On the other lane, Brazilian imports from Arab countries grew in March, individually, and also in the first quarter of the year. In March, they were US$ 991.9 million against US$ 795 million in the same month in 2012, with expansion of 24.6%. In the accumulated result for the year, imports from the Arabs totalled US$ 2.4 billion up to March 2013, as against US$ 2 billion in the same period in 2012, with expansion of 22%. Imports, as they are mostly of oil and oil products, were mainly through Sepetiba Port, in Rio de Janeiro, and Aratu Port, in the state of Bahia.
*Translated by Mark Ament
