Brazil’s Espirito Santo ornamental stones exports drop below past years levels

Exports of ornamental stones from Espírito Santo, the largest producer of these goods in the country, are at a slowdown. In the first seven months of 2023, the exports contracted by 11.07% in value compared to the same period in 2022 – dropping from US$ 613.9 million to US$ 545.9 million. At this pace, the volume of foreign sales is unlikely to surpass the US$ 1 billion threshold achieved in both 2022 and 2021. These insights stem from data compiled by the Centrorochas (Brazilian Center of Ornamental Stones Exporters).

In the first half of 2023, the trade of ornamental stones accounted for US$ 447.03 million, which is 12.4% lower than the US$ 510.57 million recorded in the previous year’s first half. Should this trend persist during the latter half of the year (July, the first month of the latter half, followed a similar trajectory), reaching the billion-dollar mark seems improbable.

Several factors contribute to the subdued market performance. The increase in interest rates in the United States, the primary purchaser of ornamental stones from Espírito Santo (accounting for over 60%), has slowed down the civil construction market there. Furthermore, the Chinese economy, the second-largest importer of Espírito Santo rocks (13%), has not met expectations either. Another hindrance factor is the competition from artificial materials manufactured in China and India.

“While all these factors play a role, it’s crucial to bear in mind that the comparison baseline is also quite elevated. The latter half of 2020 and the entirety of 2021 presented exceptional results (in 2021, the state’s stone exports reached US$ 1.11 billion). Even though we are experiencing a dip, the figures are still notably significant,” remarked Tales Machado, President of Centrorochas.

The executive expressed his belief in the likelihood of foreign sales reaching the US$ 1 billion mark. “Ocean freight is much more competitive than last year, and we’ve already noticed an improvement in purchases from China. I anticipate a more promising second half, with the maintenance of last year’s sales level.”

Source: A Gazeta

To read the original news report, click on: https://www.agazeta.com.br/colunas/abdo-filho/exportacao-de-rochas-ornamentais-do-es-encolhe-no-ano-de-2023-0823#google_vignette

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