São Paulo – Brazilian machinery exports grew by 18.8% from January until October this year compared with the same period of 2009, but did not match the levels of 2008 yet. According to data disclosed by the Brazilian Machinery and Equipment Industry Association (Abimaq) this Wednesday (24th), revenues from exports reached US$ 7.4 billion in the first ten months this year, as against US$ 6.2 billion in the same period last year and US$ 10.3 billion in the same period of 2008.
Despite the increase over last year, at a press conference, the chairman of the Abimaq, Luiz Aubert Neto, expressed dissatisfaction about the export figures and ascribed the performance mainly to the exchange rate, which is now unfavourable to foreign sales. He also underscored that exports are increasingly concentrated in South America. Neto stated that two or three years ago, exports to Europe were much greater. "We are more dependent on our own backyard, which goes to show that we are losing market," he said.
The United States were the leading buyer of Brazilian machinery from January to October, having imported the equivalent of US$ 1.2 billion, an increase of 9.2%. Argentina, the second in the list, increased its purchases by 17.3%, Chile, the fifth in the list, purchased 51.5% more, Peru, the sixth, imported 62.7% more, and Paraguay, the ninth, bought 114.5% more. In October alone, machinery exports grew by 46.9% over the same month of 2009, but remained below 2008 levels by 6.2%, at US$ 971 million.
On the other hand, imports have grown and are cause for concern among Brazilian machinery manufacturers, who should request, in the next few days, that the federal government raise import tariffs. Imports have risen by 31.8% from January to October and reached US$ 20.3 billion. In October alone, imports grew by 29.6% and generated US$ 2.1 billion in revenues.
The leading suppliers were the United States, followed by China, Germany, Japan and Italy. The Abimaq chairman highlighted the rise of China in the ranking. Chinese sales rose by 76.2% during the period. As of 2004, the country was the tenth leading supplier of machinery to Brazil. "Should imports from China continue growing by 75% per year, whereas purchases from the United States grow by 25% (up until October this year the rate was 17.3%), in a couple years China will be the leading foreign supplier of capital goods to Brazil," said Neto.
The industry posted 59.3 billion reals (US$ 34.2 billion) in revenues from January to October this year, representing growth of 10.8% over the same period of 2009 and a 14.6% decline over 2008. In October the figure was 5.8 billion reals (US$ 3.3 billion), growth of 1.1% over last year and a 22.5% drop compared with October 2008. The number of jobs in the industry, however, has grown in October this year. "We are producing more, but our revenues are lower than in 2008. Brazil is being de-industrialized by exports," he claimed. He forecasts that revenues should be 4.5% to 5% higher in 2011.
*Translated by Gabriel Pomerancblum
