Brazil’s Leather Exports Decline for the First Time in 2024

In August, Brazilian leather exports dropped for the first time this year. A total of 13 million square meters and 38,300 tonnes were traded, generating $88.4 million in revenue. This represents a decrease of 10.9% in square meters, 6.3% in tonnes, and 14.3% in value compared to the same month last year. The data, provided by the Secretariat of Foreign Trade (Secex) of the Ministry of Development, Industry, Commerce, and Services, was analyzed by the Centre for the Brazilian Tanning Industry (CICB).

According to Rogério Cunha, from the CICB’s commercial intelligence division, the decline in leather exports in August is “a natural market tendency.” He explained, “The market can fluctuate throughout the year, depending on inventory levels and fashion collection development periods. Additionally, some clients are on vacation during this time, and leather prices also influence the current scenario. We are currently witnessing a convergence of all these factors affecting the global leather industry.”

Seven Consecutive Months of Growth in Leather Exports

On a positive note, Cunha pointed out that Brazil had experienced seven consecutive months of “consistent growth.” Year-to-date figures remain favorable, with an increase of 13.7% in dollar value and 22.2% in volume (measured in square meters). Additionally, Brazil’s recent participation in a Chinese trade fair is expected to generate $153 million in deals for the country’s tanneries.

Cunha also highlighted that some of Brazil’s key leather importers have posted growth rates “above average.” For instance, China and Hong Kong—Brazil’s largest markets—saw a 21% increase over the first eight months of 2023, while Vietnam, the fourth-largest market, reported a 100.9% surge.

Market Instability

Cezar Müller, director of AP Müller Tannery (Portão/RS), noted that the company’s exports from January to August 2024 “were volatile.” He explained, “There were highs and lows, but overall, they fell short of our needs.” Müller also pointed out that “the instability in the global economy is impacting our business and that of our clients.”

Looking ahead, Müller believes the outlook for the international leather market could shift with “new signals from economic policy, which could bring greater stability to the leather sector.”

Source: Exclusivo.com

Original text: https://exclusivo.com.br/negocios/exportacoes-de-couro-tem-a-primeira-queda-em-2024/

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