São Paulo – Semi-finished goods exports from Brazil to the Arab countries were up 19.9% in the first two months of 2020, as per Foreign Trade Secretariat (Secex) numbers compiled by the Arab Brazilian Chamber of Commerce. This was the only product category to see a hike in sales to that region during the period – basic and finished goods exports dropped.
Total exports from Brazil to Arab countries were down 17.2% to USD 1.6 billion. Semi-finished goods exports were driven by ferroniobium, gold bullion, wire and profiles of solid cross-section, raw maize oil, and some types of sugar.
Exports were up 1,612% to USD 2 million for ferroniobium, 226% to USD 13.1 million for gold, 63% to USD 2.1 million for maize oil, and 34% to USD 331.3 million for other sugars. Ferroniobium is primarily used as an input in steelmaking. Processed fruit exports also climbed.
Basic goods exports from Brazil to Arab countries were down 25% year-on-year in January and February on the back of weaker sales of poultry offal, beef and maize. Finished goods exports were down 23.3% as sales slid for beef preparations and preserves, orange juice and other food preparations.
Still Brazil’s surplus in trade with Arab countries widened by 28% to USD 900 million, with imports of goods from Arab countries to Brazil sliding even further at 43.2%, to a meager USD 693 million in January and February.
Oil played a big part in this. Despite the slowdown, the Arab market as a whole remained the third biggest destination for exports from Brazil, trailing China and the United States. The Arab bloc was the sixth biggest supplier of goods to Brazil, after China, United States, Germany, Argentina and India.
Translated by Gabriel Pomerancblum
