São Paulo – Brazilian footwear exports to Saudi Arabia and the United Arab Emirates dropped in Q1 in comparison to Q1 of last year. According to a balance report of the period released this Tuesday (12) by the Brazilian Footwear Industry Association (Abicalçados), between January and March of this year, sales decline both in volume and revenues.
According to the data, in Q1 of this year Saudi Arabia imported USD 6.5 million in Brazilian footwear, a decline of 17.9% over the same period in 2015. In volume, it bought 607,000 pairs, or 15.9% less than between January and March of 2015. The average price of the footwear sold to the Saudis was USD 10.75%. In Q1 2015 it was USD 11.01.
In turn, the United Arab Emirates imported 567,800 pairs between January and March, in a total of USD 4.8 million. In volume, the decline was 19% in comparison to the same period of 2015, and in revenues the drop was of 25%. The average price between January and March of 2016 was USD 8.63 per pair. In the previous year, it was USD 9.32.
The main buyers of Brazilian footwear in the period were the United States, with imports of USD 49.5 million and an increase of 19.2% over Q1 of the previous year. Saudi Arabia was ranked at 8th. The UAE held the 11th position in the top 20 list of buyers.
Consolidated result
Overall, exports by the members of Abicalçados declined in March and in Q1. Last month alone, exports totaled USD 79.7 million, or 12.5% less than in March 2015. In volume, 10.5 million of pairs were shipped, or 2.3% less in the same comparison. The average price of the pair declined from USD 8.43 in March 2015 to USD 7.55 in March of this year.
In Q1, revenues with footwear exports totaled USD 226.7 million and were 6.1% less than Q1 2015. In volume, 31.8 million pairs were sold between January and March, 0.5% more than in Q1 2015.
In a statement, Abicalçados’s CEO, Heitor Klein, said that, despite the decline in the comparison from one year to another, exports are increasing in the comparison month to month, which shows a gradual recovery. He said, however, that the foreign exchange oscillation and political instability generate insecurity in the market, which affects negotiations. “In a matter of few months we went from a dollar price of BRL 4 to BRL 3.50. The insecurity generated is huge. Importers wait for the best moment to close the deal, which ends up delaying or even cancelling the shipments”, he said.
*Translated by Sérgio Kakitani
