Brazilian trade balance registers US$1.6 billion surplus in second week of June

The Foreign Trade Secretariat (Secex) of the Economy Ministry released data on Brazil’s trade balance on Monday, June 15. It showed Brazil registered a surplus of US$1.599 billion and a trade flow of US$6.309 billion in the second week of June (which had only four working days) due to US$3.954 billion worth of exports and US$2.355 billion of imports.

In the year-to-date, exports totaled US$92.611 billion and imports, US$73.72 billion, with a positive balance of US$18.891 billion and a trade flow of US$166.332 billion.

Analysis of the month

On the export side, daily average exports until the second week of June stood at US$899.33 million, compared with US$968.74 million year-on-year, marking a decrease of 7.2%, due to the decrease in sales in the mining industry (-22.6%) and in manufacturing (-15.7%). On the other hand, there was a significant increase in agribusiness (+ 34.3%).

The drop in exports was mainly driven by the decrease in sales of the following products: crude petroleum oils or bituminous minerals (-47.1%); iron ore and concentrates (-6.5%); copper ores and concentrates (-18.2%); aluminum ores and concentrates (-29.4%) and coal, even in powder, but not agglomerated (-99.9%).

Regarding the manufacturing industry, the drop in exports was mainly due to a decrease in aircraft exports and related equipment such as aircraft parts (-89.4%); poultry meat and its edible offal, fresh, chilled or frozen (-33.4%); non-electric engines and machines, and their parts, except piston engines and generators (-82.9%); pig iron, spiegel, sponge iron, granules and powder of iron or steel and ferroalloys (-27.4%); and motor vehicles for the transportation of goods and special uses (-57.7%).

On the import side, the daily average was US$530.5 million in the first half of June, which is 22.6% down on year-ago levels. Imports fell mainly in agriculture (-22.3%) and manufacturing (-25.8%). Meanwhile, the mining industry saw an increase of 21.2%.

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