São Paulo – Exports from Brazil to the Arab countries declined in November. Last month, revenues earned with these exports totaled USD 849.2 million, a drop of 27.3% over the same period of 2014. Year-to-date, sales totaled USD 10.95 billion, or 10.3% less than between January and November of last year. In volume, Brazil exported in November 3.19 million tons to the Arabs, or 33.09% less than in the same month of 2014. Year-to-date, sales totaled 36.5 million tons, or 9.4% more than 2014.
The data is from the Ministry of Development, Industry and Foreign Trade (Mdic) and was compiled by the Arab Brazilian Chamber of Commerce. According to the numbers, Saudi Arabia, the United Arab Emirates and Egypt, some of the main buyers of Brazilian products, imported less in November. Egypt bought 445,600 tons in November, a drop of 3.8% over the same month of 2014, due mainly to fewer purchases of meat and sugar.
In turn, Saudi Arabia and the United Arab Emirates stopped importing iron ore. Last month, Saudis purchased 362,900 tons of Brazilian products, 56.2% less than in the same period of 2014, when iron ore purchases by themselves totaled 506,000 tons. The United Arab Emirates imported 341,300 tons from Brazil in November, or 45.2% less than November of last year, when iron ore purchases by themselves totaled 398,000 tons.
For the Arab Chamber’s CEO, Michel Alaby, the decline in exports in November is an “exceptional” situation. “It could be that they are reducing stocks. The oil price is falling and it could also be that this reduction is linked with lower revenues at the moment”, he said. Besides the drop in volume, the commodities’ prices are also lower.
Alaby is expecting a growth in exports due, among other reasons, to the resume of beef shipments to Saudi Arabia. The embargo that was put in place on December 2012 was lifted at the end of November. The Association of Brazilian Beef Exporters (Abiec) estimates that beef exports to the Saudis could reach 50,000 tons per year. Besides, the countries that follow Saudi Arabia’s health decisions, such as Kuwait and Bahrain, should also resume beef purchases soon.
Meanwhile, Brazilian imports from the Arab countries totaled in November USD 715.6 million, especially of oil and by-products, a decline of 37.7% over the same month of last year. Brazil’s purchases of oil from Saudi Arabia suffered the most, with a 51.9% decline with a total of USD 214.8 million.
Year-to-date until November, imports totaled USD 6.59 billion and the trade balance with the Arabs stands with a surplus of USD 4.36 billion.
*Translated by Sérgio Kakitani
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