Brazilian exports of components and chemical products for footwear industry show growth in April

Brazilian exports of components and chemical products for the leather and footwear industry were on the rise in April. According to data compiled by the industry association Assintecal, the exports of the sector generated USD 70.56 million, marking a 4% increase compared to the same month last year. In the first quarter, shipments totaled US＄ 235.67 million, showing a 2% growth compared to the same period in 2022.

Luiz Ribas Júnior, Assintecal’s International Market manager, points out that Latin American countries drove the export numbers up at the beginning of the year. “Traditional destinations such as China, Argentina, and the United States are losing their prominence to neighboring countries like Colombia, Chile, and Bolivia,” assesses Ribas Júnior. He also explained that the sector’s performance is still influenced by international trade shows held earlier this year, particularly the Colombian IFLS + EICI, where Assintecal accompanied 21 Brazilian companies in February. “With the Latin American market rebounding, we expect the sector’s exports to grow by 5% throughout 2023,” he projects.

See the chart below for an analysis of Brazil’s exports of chemical products and components for the footwear industry (hs codes 3402-3405)shipped inside containers from maritime ports between Jan 2019 and Mar 2023. The data was provided by Datamar’s intelligence team with the aid of the DataLiner platform.

Chemical products and components | Jan 2019 – Mar 2023 | TEU

Source: DataLiner (click here to request a demo)

Destinations

Regarding the destinations, Portugal emerged as the main buyer of components and chemical products for the leather and footwear industry during the four-month period, receiving USD 27.9 million worth of products, a decrease of 55% compared to the same period last year. Argentina ranked second in terms of imports, importing the equivalent of US＄ 27.6 million in manufacturing materials and chemicals during the first four months of 2023. Brazil’s neighbor to the south, currently facing an economic crisis, is implementing measures to control the outflow of foreign currency, leading to a significant drop of 121% in purchases compared to the corresponding period in the previous year.

“Argentina, apart from its serious economic crisis, has imposed import restrictions to curb the outflow of foreign currency from the country,” commented Ribas Júnior. China, traditionally the largest international buyer in the sector, particularly chemical products, ranked third. Shipments to China amounted to USD 22.9 million in the four-month period, representing an 18% decline compared to the same period last year.

Rio Grande do Sul accounts for over 50% of foreign exchange earnings

As the primary source of exported chemical products and materials in the four-month period, factories in Rio Grande do Sul reached over US＄ 127.9 million in exports, an 8% increase compared to the same period in 2022. Rio Grande do Sul currently represents over 50% of the foreign exchange generated by the sector’s exports. São Paulo ranks second in the ranking, with exports totaling the equivalent of US＄ 30 million, a 21% increase compared to the same period last year.

Materials

The most exported product by the sector in the four-month period was “Chemicals for leather,” generating US＄ 139.14 million, a 35% increase compared to the same period in 2022. In second place were “Uppers,” with US＄ 44.96 million, experiencing a 72% decline compared to last year. Following closely were “Chemicals for footwear” – adhesives, with US＄ 28.7 million and a 17% increase; “Synthetic laminates,” with US＄ 9.94 million and a 10% increase; “Soles,” with US＄ 3.6 million and a 390% decrease; and “Insoles,” with US＄ 1.22 million and a 127% decrease.

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