Upward trend of Brazilian footwear components exports comes to an end with 111% drop in sales

After months of increases, Brazilian footwear components exports fell significantly in October. In the month, according to data compiled by the industry association Assintecal, exports from the sector generated US$ 19 million, 111% less than in the same month last year. However, the industry’s results remain positive from January to October despite the October drop. In the ten months of the year, exports totaled US$ 351 million, 14% more than in the same period last year.

Assintecal’s International Market manager, Luiz Ribas Júnior, points out that the drop recorded in October was an “expected” adjustment in view of a highly atypical end of 2021. “We had extraordinary results in the last quarter of 2021 in the face of a production peak as well as a more intense international demand due to the high costs of Chinese freight,” says the manager, noting that the value registered last month is “on average” for the sector.

According to him, this year has been very positive for the industry, which has primarily conquered markets in Latin America and the United States. “Latin America is home to six of our top ten international destinations. The United States, conversely, increased its imports of Brazilian components by 56% between January and October of this year,” he adds.

See below the track record of Brazilian exports of footwear and their components (hs codes 6400 to 6406) between Jan 2019 and Sep 2022. The data is from DataLiner.

Exports of footwear and their components | Jan 2019 – Sep 2022 | TEUs

Source: DataLiner (click here to request a demo)

International destinations

Argentina was the leading destination for footwear components exported from Brazil in the first ten months of the year, importing the equivalent of US$76 million, 37% more than in the same period in 2021.

China, a country that imports many chemical products for leather, was the sector’s second destination during this time. The equivalent of US$ 65.7 million was exported there in ten months, 14% less than in the same period last year.

The third that imported the most products from Brazil was Portugal, where US$ 44.3 million in Brazilian components were shipped, 36% more than in the same period of 2021. In fourth place is the United States, to which sector exports totaled US$ 9 million, an increase of 56% compared to last year.

Producing states

Rio Grande do Sul state was Brazil’s most prominent export of footwear components in the first ten months of the year. The equivalent of US$ 190 million left the factories in the state, up 8% from the same period in 2021.

Sao Paulo was the country’s second-largest exporter of footwear components, with the equivalent of US$ 42 million leaving the country, 38% more than in the same period last year.

The third exporter of components in the period was the state of Bahia. In ten months, exports from Bahia totaled US$ 27.34 million, 34% more than in 2021.

Products

In terms of products, the most exported products in 2022 were Chemicals for Leather, which totaled US$ 158 million from Jan to Oct, 5% more than in the same period of 2021.

Shoe uppers ranked second with US$ 94.8 million (10% more than in the corresponding period of 2021); Footwear Chemicals made it to the podium in third with US$ 42.4 million (35% more than last year); finally, the list closed with soles, with US$ 23 million (44% more than in 2021).

Source: Comex do Brasil

To read the full original article, please go to: https://www.comexdobrasil.com/vendas-externas-de-componentes-para-calcados-interrompem-trajetoria-de-alta-e-desabam-111-em-outubro/

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