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Brazil imports fewer inputs; industrial crisis expected

Wednesday, January 17th 2024 - 10:59 UTC
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A drop in key imports is not a good sign, according to Murillo Barbosa A drop in key imports is not a good sign, according to Murillo Barbosa

According to a report published Tuesday by Folha in Sao Paulo, a trade imbalance at private ports would reflect dramatic conditions for the local industry. A deficit in the arrival of key inputs will sooner or later result in fewer products manufactured and the vicious cycle would then mean increasingly dwindling export revenues.

The balance of trade at private terminals showed a 14% drop in imports of inputs, Folha noted based on data from an ATP (Association of Private Port Terminals) report which showed that, in 2023, exports by ship totaled US$ 300 billion, a 1.9% increase from the previous year. Today, private ports account for 65% of the country's foreign sales.

The balance for the period was US$119 billion because there was a 14% reduction in imports which analysts read as proof that Brazil's industry has stopped buying inputs.

The experts surveyed by Folha find this to be the consequence “of the economy's low growth forecast.”

According to ATP President Murillo Barbosa, Brazilian port terminals (TUPs) were boosted by exports of sugar (up 43.4%), seeds, oilseeds such as soybeans, as well as iron ore, which reached the US$ 34.6 billion mark in exports, representing growth of 7.2%.

“In the case of ores, the Private Use Terminals were responsible for 86.1% of the movement of this cargo,” said Barbosa. “Porto Sudeste do Brasil recorded an increase of more than 50% in its iron operations.”

Regarding the drop in imports, Barbosa said he believed it stemmed from the decrease in the quantity and average price of mineral fuels, with a 22% reduction in the average price.

The only reason the drop was not greater was because there was a 7.4% increase in the quantity of fertilizers imported, albeit with a drop of more than 40% in their average value.

(Source: Folha)

Categories: Economy, Brazil.

Top Comments

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  • Esteban Domingo Fernandez

    Putin respects no one Brasil and has no civility what so ever, yet another crazy post from yourself, its good for a laugh, but that is all,

    Jan 17th, 2024 - 11:56 pm 0
  • Brasileiro

    The quality of economic and market analyzes by the media controlled by financial capital is appalling.

    “Brazil imports fewer inputs; industrial crisis expected”

    There is no crisis! What happened in 2023 was the reactivation of our refineries that had been abandoned since the coup d'état and during the entire period of the Nazi government, when the Brazilian State gave preference to importing diesel and gasoline from the United States instead of producing it here in the country. I know, absurd!

    Bolsonaro loved Trump and that's why he gave my country as a gift to win the heart of the North American leader. In return he received a kick in the ass!

    These inputs are actually gasoline and diesel that are no longer imported because our refineries are already operating at 90% of their capacity. And more refineries are being built and expanded to once and for all end the import of energy from which we dominate the entire production cycle, including nuclear.

    Folha de São Paulo, as well as the absolute majority of the “captive” media, is interested in weakening President Lula's government because it does not want Brazil to have a strong state independent of the United States.

    All the owners of Jornal Folha de São Paulo live in Miami and New York and their children were born in the United States. Brazil for them became an exploration colony.

    Ahh, when we need to import diesel or gasoline, we are turning to Russia where prices are better and where there is more civility and respect for Brazil.

    Jan 17th, 2024 - 12:53 pm -2
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