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Brazil’s hide exports still down compared to 2021

2022-09-20

Source:leathermag

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Brazil’s August exports of hides and skins totaled US$105.3 million, down by 17.6% compared to the same month last year, when US$127.8 million were exported, but were higher by 21.6% compared to July.

The data was presented by SECEX (Secretariat of Foreign Trade) of the Ministry of Economy and analyzed by the Center for the Brazilian Tanning Industry (CICB).

The total exported in square meters was 12.4 million in August, 19.8% below the same month in 2021 but 35.2% higher than July, when the total was 9.2 million m2.

From January to August, exports totaled US$858.3 million, a decrease of 6.9% compared to the same period in 2021, and 20.6% lower in commercialized area, with 95.2 million square meters.

The world economic situation currently has a negative outlook, with an emphasis on Europe. The energy crisis in there does not have a solution in the short term, in addition to the conflict in Ukraine being prolonged and demonstrating that it can last for months or even years. In addition, double-digit inflation and the frequent devaluation of the Euro directly impacts consumption, harming local industries in several countries.

In China, the news in recent weeks shows that the latest round of lockdowns affected around 300 million people, echoing a major disruption in the leather sector as well. Hebei province, a region where tanneries are concentrated in the north of the country, is completely closed to production.

With this scenario, it is likely that new business in the last quarter of the year will be impacted.

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