Exports decrease in June09/07/2019
There was a decrease in footwear exports in the last month of the semester. Data prepared by the Brazilian Footwear Industries Association (Abicalçados) indicates that 6.4 million pairs were shipped in the sixth month of the year. They generated USD 64.45 million, a 25.8% decrease in volume and a 24.5% decrease in revenues in comparison with the result in the same month in 2018. Therefore, over the semester, a total of 58.3 million pairs were shipped, generating USD 480.7 million, figures 5.3% higher in volume and 1.3% smaller in values in comparison with the same period last year.
During the semester, the main destinations of Brazilian footwear exports were the United States (6.4 million pair and USD 101.25 million, a 28.4% increase in volume and a 34.6% increase in revenues in comparison with the corresponding period last year), Argentina (3.47 million pairs and USD 44.5 million, a 37.2% decrease in volume and a 41.8% decrease in revenues), and France (3.47 million pairs and USD 26.16 million, a 1.1% decrease in volume and a 13.6% decrease in revenues).
During the semester, the main origin of Brazilian exports in the industry was the state of Rio Grande do Sul. During the period, manufacturers in that state shipped 14.18 million pairs that generated USD 212.44 million, a 5.3% increase in volume and a 2.5% decrease in revenues in comparison with the corresponding period in 2018.
The second origin during the semester was Ceará, from where 21.3 million pairs were shipped, generating USD 129.7 million, a 3.6% decrease in volume and a 4% increase in revenues in relation to the same period last year.
The third origin during the period was São Paulo. The state shipped 3.83 million pairs for USD 50.7 million, an 8.6% increase in volume and a 5.8% decrease in revenues in comparison with the six first months of 2018.
For Abicalçados' executive president, Heitor Klein, the result mostly reflects the decrease in exports to Argentina, the second destination of Brazilian shoes. "In the first months of 2018, the neighboring country even surpassed the United States as the main destination. The deterioration of imports was quick and is mainly explained by the need to maintain the international reserves of that country, imposed by the IMF, which inhibits imports, and also by the weak domestic demand," he evaluates. According to Klein, the shipments to the United States, due to the trade war waged between Donald Trump and China, have been "safeguarding" the result. "The trade war has been making U.S. importers seek suppliers in countries other than China," says Klein. He highlights that 70% of U.S. imports – 1.7 billion of the more than 2.3 billion pairs imported every year – consist of Chinese shoes.
During the semester, 15.6 million pairs were imported for USD 180.87 million, a 2.4% increase in volume and a 1.3% decrease in dollars in comparison with the corresponding period in 2018. Considering the month of June alone, 1.72 million pairs were imported for USD 26.74 million, a 16.7% decrease in volume and a 10% decrease in revenues in relation to the same month last year. The main origins of footwear imports were Vietnam (5.66 million pairs for USD 89.2 million, a 6.5% decrease in volume and a 12% decrease in dollars in relation to the same period in 2018), Indonesia (2.33 million pairs for USD 35.87 million, 22.6% and 12% increases, respectively), and China (6 million pairs for USD 24.34 million, 4.3% and 9.6% increases, respectively).
In footwear parts – uppers, soles, heels, insoles etc. – imports during the semester totaled USD 16 million, 44.3% less than in the corresponding period in 2018. The main origins were China, Paraguay, and Vietnam.