Rising raw material prices hit industries in Brazil

A survey by the National Confederation of Industry (CNI) made public on Wednesday (1) shows that the rising raw material and input prices unexpectedly hit the manufacturing sector in March. According to the survey, the rising input and raw material costs exceeded the expectations of 71% of the companies in the extractive and processing industry and 73% in the construction industry.

According to CNI, 58% of the companies in the extractive and processing industry and 68% of the construction firms reported higher-than-expected prices increases of imported inputs. The confederation believes the result coincides with the beginning of the Russia-Ukraine war, which has aggravated the supply chain disturbances. Consequently, in addition to delays and interruptions in the input supply, price hikes have also been noticed.

According to the survey, the delays in supply chains have reshaped the production in Brazilian industries, particularly those that rely on imported inputs. These industries have had to change their input and raw material acquisition strategy and seek out suppliers in Brazil. A small portion of the companies have sought alternatives overseas.

The survey has shown that the proportion of extractive and processing businesses that forecast a normalization of the input and raw material supply later this year is 39%. The percentage of general manufacturing and construction companies that expect a normalization only in 2023 is 25%, 36% for national products and 31% and 45% for imports.

Source: ANBA – BrazilArab News Agency

To read the full original article, please go to:

https://anba.com.br/en/rising-raw-material-prices-hit-industries-in-brazil/

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