Exports total 65 million footwear pairs in July08/08/2019
July registered the shipment of 7.9 million pairs that generated USD 84.35 million, a 65.2% increase in volume and a 44.4% increase in dollars in comparison with the same month last year. Thus, the total of the seven months of the year reached 65 million pairs and USD 565 million, an 8.2% increase in volume and a 3.6% increase in revenues in comparison with the corresponding period in 2018.
Abicalçados' executive president, Haroldo Ferreira, highlights that the result was especially driven by the United States, main destination of Brazilian shoes abroad. The President of the United States, Donald Trump, has recently announced the 10% increase in the import tariff for shoes from China, going from the general average of 17.3% to 27.3%. Even though the list is still being analyzed by the United States Congress, local importers of Asian shoes are already searching alternative suppliers, such as Brazilians. "Nowadays we are the greatest footwear manufacturer outside Asia. Evidently, this trade war will have an impact on the industry," Ferreira assesses. On the other hand, he assesses that Trump's measure opened the door to a currency war, with the greatest devaluation of the yuan – the Chinese currency – in a decade, aimed at offsetting the raised tariffs. In July, Brazilian exports to the United States reached 757.4 thousand pairs, which generated USD 18.52 million, a 96.6% increase in volume and a 79% increase in revenues in relation to the same month of 2018. With this result, over the seven months, Brazilian exports to the United States reached 7 million pairs, for which USD 119.74 million were paid, a 33.3% increase in pairs and a 40% increase in dollars in relation to the same period last year.
If, on the one hand, exports to the United States have been expanding, the same is not true for the second destination of Brazilian shipments. In July, Argentina imported 11.1% less in revenues than in the same month in 2018, reaching USD 10.23 million. In pairs, however, the result was positive, at 21.4%, pointing to purchases of products with less value added during the period. In July, Argentinians bought 1.17 million Brazilian pairs. With this result, over the seven months, Argentina imported 4.64 million pairs for USD 54.73 million, 28.5% and 37.8% decreases, respectively, in relation to the corresponding period last year. “Argentina's situation is complicated both in the domestic environment, with a sharp drop in demand and rampant inflation, and abroad, with the need imposed by the IMF to preserve its international reserves, which inhibits imports from any origin,” Ferreira explains.
The third destination of Brazilian shoes abroad was France, which imported 275 thousand pairs for USD 6.9 million in July, 42.4% and 24.8% increases, respectively, in relation to July 2018. Thus, throughout the year, the French totaled the imports of 3.74 million pairs for USD 33 million, a 1.2% increase in volume and a 7.6% decrease in revenues in comparison with the same period last year.
The main exporter of Brazilian shoes in the first seven months of the year was the state of Rio Grande do Sul. During the period, the state shipped 17 million pairs, which generated USD 256.18 million, 11.2% and 2.3% increases, respectively, in relation to the same period in 2018. The second origin was the state of Ceará, from where 23.6 million pairs were shipped for USD 146.68 million, 0.1% and 9.1% increases, respectively, in comparison with the same period in 2018. The third origin was the state of São Paulo, which shipped 4.4 million pairs for USD 59.53 million, 9.2% more in volume and 2.8% less in revenues in relation to the same period last year.
Just like exports, footwear imports increased in July. During the seventh month, 2 million pairs came into Brazil, for which USD 33.73 million were paid. The results are higher both in pairs (11.5%) and in dollars (8%) in relation to the same month of 2018. Therefore, in the seven months 17.63 million pairs entered Brazil for USD 214.6 million, a 0.6% increase in volume and a 0.1% increase in revenues in comparison with the corresponding period last year.
In the seven months, the main origins of imports were Vietnam (6.78 million pairs and USD 107.2 million, 7.4% and 10.8% decreases, respectively, in relation to 2018); Indonesia (2.6 million pairs and USD 41 million, 18.7% and 13% increases, respectively); and China (6.28 million and USD 28.14 million, 1.7% and 15.8% increases, respectively).
In footwear parts – uppers, soles, heels, insoles etc. – the imports reached USD 7 million in the first seven months of the year, 40% less than in the same period last year. The main origins were China, Paraguay, and Vietnam.
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