High prices secure new trade record between Brazil and China

Year-to-date figures of 2021 point to trade record between Brazil and China. The Sino-Brazilian trade flow, measured as the sum of imports and exports, reached US$ 135 billion in the year, the highest in history. It was the fourth year in a row that the two countries set new trade records.

Brazilian companies sold US$ 87.9 billion in products to China, an increase of 29% compared to 2020. Conversely, they bought US$ 47.6 billion, 37% more than the previous year.

Trade record between Brazil and China

According to data from the Ministry of Economy, trade between the two countries has increased by more than 130% since 2016, which makes China Brazil’s largest trading partner.

However, in the case of exports, a record figure does not always imply an increase in the volume traded. For example, according to Tulio Cariello, content and research director of the Brazil-China Business Council (CEBC), only one of Brazil’s ten products most exported to China grew in volume in 2021: pork.

“Other products saw a decrease. Sugar shipments to China, for example, decreased by 10%; iron ore decreased 2%; crude oil was down by 22%; beef was down by 17%. However, despite the drop in [exported] volume, only three [of the most exported products] fell in value. In other words, the earnings increased due to the increase in the international price of some commodities,” summarizes.

As for imports, the volume acquired increased, not only the prices. Brazil buys mostly manufactures products from China.

The picture was one of increased acquisition volume, not just in terms of price – in this country, nearly all of what we buy from China is manufactured. Fertilizers and chemical fertilizers were among the products that stood out in this field, with a 200% increase in volume and a 400% increase in imported value.

Immunological products and vaccines also stood out, registering a growth of 311% in value despite the 11% imported volume drop.

Fonte: Gazeta do Povo

To read the full original article, please see:

https://www.gazetadopovo.com.br/economia/negocios-brasil-china-recorde-2021-alta-precos/

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