Brazil gains with oil exports to Europe, shipments to China decrease

Amid the shortfall in Brazil’s soybean crop and restrictions imposed by China against the advance of the coronavirus, which hampered demand in the country, Brazilian shipments to China decreased in May, according to data released this Monday (13) by the Foreign Trade Secretariat.

Brazilian shipments to China, the world’s second-largest economy, totaled US$ 8.5 billion last month, equivalent to 28.8% of the total exported by Brazil. This means that China is still the leading destination for Brazilian products, but in May 2021, the number had been higher – US$ 9.2 billion, or 35.3% of the total sold.

According to the undersecretary of Intelligence and Foreign Trade Statistics, Herlon Brandão, the 11.9% drop in average daily exports to China reflects both problems on the Brazilian supply side and the Chinese demand side.

“The Brazilian soybean crop saw a 10% reduction this year. The country also experienced a drop in iron ore exports, as China has gone through lockdowns due to the Covid-19 outbreak, causing economic activity to decrease,” pointed out Brandão.

According to him, this is likely to be only punctual. “I believe this is coincidental and that China will continue to be a tremendous partner for Brazil, with rising relevance,” he said.

See below the percentage share of the six most exported products from Brazil to China from January to April 2022. The data below comes from DataLiner.

Top 6 exports to China | Jan 2022 – April 2022 | WTMT

Source: DataLiner (click here to request a demo)

On the other hand, exports to Europe totaled US$ 6 billion and gained relevance in foreign sales, growing to a share of 20.3% (compared to 17.4% in May 2021). The increase in sales to the continent was 26.4% on a daily average.

“Exports to the European Union increased significantly, owing mostly to a surge in crude oil sales, which increased by 115%, and rising shipments of products such as soybean meal,” stated Brandão.

Source: Trademap

To read the full original article, please go to:

https://trademap.com.br/agencia/brasil/china-compra-menos-do-brasil-por-lockdowns-enquanto-europa-importa-mais-petroleo-brasileiro

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