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Footwear exports decreased by 66% in May

The effects of the new coronavirus pandemic keep impacting the results of Brazilian footwear exports. Data prepared by the Brazilian Footwear Industries Association (Abicalçados) indicates that 2.7 million pairs were shipped in May. They generated USD 23.9 million, decreases both in volume (-64.7%) and in revenues (-66%) in relation to the corresponding month of 2019. With this result, in the first five months of 2020 exports totaled 39.53 million pairs and USD 294.9 million, decreases of 22.1% and 28.7%, respectively, in comparison with the same period last year.

Abicalçados' executive president, Haroldo Ferreira, highlights that the industry already expected this result since it is possible to notice that orders have been waning since the beginning of the year. "In 2020, we did not have any positive results in relation to 2019, but the decreases became more significant as the months went by. Exports will likely stabilize or decrease less only in the last quarter of the year. The year 2020 will likely end with a setback of 30% in shipments," the leader foresees. He stresses that the industry's exports will probably return to the levels registered in the 1980s. According to him, in addition to the declining international demand, impaired logistics and the increasingly fierce competition from Asian manufacturers, whose economies were reactivated long before Brazil, explain the decreased shipments in Brazil.

The main destination of Brazilian shoes abroad in the first five months of the year was the United States, where 3.8 million pairs were shipped to, generating USD 57.7 million, decreases of 32.3% and 32.1%, respectively, compared to the same period last year. The second destination was Argentina, which imported 2.88 million Brazilian pairs for USD 29.47 million, decreases of 3.8% in volume and of 21.7% in revenues in comparison with the same period in 2019. Completing the three main destinations, France imported 2.68 million Brazilian pairs, for which USD 19.52 million were paid, decreases of 17.8% and 10.7%, respectively, compared to 2019.

States
Largest footwear exporter in Brazil, the state of Rio Grande do Sul accounted for 43.7% of the total generated by exports in the first five months of the year. Nonetheless, shipments of companies from the state plummeted in pairs and values in relation to last year. During the period, 9.25 million pairs left Rio Grande do Sul, generating USD 126.4 million, decreases of 24.5% and 30.1%, respectively, in comparison with the corresponding period of 2019.

The second-largest footwear exporter during the period was the state of Ceará, from where 13.7 million pairs were shipped, generating USD 77.87 million, decreases both in volume (-30%) and in revenues (-32.6%) in comparison with the first five months of 2019.

The third-largest exporter during the period was the state of São Paulo, which saw its exports decrease by 15.3% in volume and by 29.8% in revenues in comparison with 2019. In the five-month period, manufacturers from the state shipped 2.76 million pairs that generated USD 30.47 million.

The only state with positive results in the roster of main exporters during the period was Paraíba. In the five months, exports of manufacturers in the state totaled 8.33 million pairs, generating USD 26.5 million, decreases of 5% and 2%, respectively, compared to the same period in 2019.

Imports
In the first five months of the year, Brazil received 11.65 million pairs, for which USD 138.32 million were paid, decreases of 16% in volume and of 10.3% in revenues in relation to the same period of 2019. Considering the month of May alone, imports decreased by 47.4% in pairs and by 50% in revenues in comparison with the corresponding month last year (1.2 million pairs and USD 15 million).

The main origins of Brazilian imports during the first five months of the year were Asian countries. Vietnam (with 4.68 million pairs and USD 78.78 million, a decrease of 5% in volume and an increase of 1.2% in dollars), Indonesia (1.4 million pairs and USD 23 million, decreases of 31% and 25%, respectively), and China (4.58 million pairs and USD 18 million, decreases of 17.3% and 7.2%, respectively), together, accounted for over 80% of Brazilian footwear imports.

In parts – uppers, heels, soles, insoles, etc. – Brazilian imports during the first five months of 2020 totaled USD 9.37 million, 29.5% less than in the same period last year. The main origins were China, Paraguay, and Vietnam.