Machinery exports went up in first half

27 de julho de 2016

São Paulo – Brazilian exports of mechanical capital goods totaled almost USD 4 billion in the first half, an increase of 1.1% over the same period of last year, according to data released this Wednesday (27) by the Brazilian Machinery Builders’ Association (Abimaq). In volume, shipments climbed 10.4% in the same comparison.

In July only, foreign sales grossed USD 695.56 million, up 2.3% over the same month of 2015. In comparison to May 2016, June exports remained stable.

The association emphasized the increase in shipments of equipment for infrastructure and the primary industry and of machinery for the oil and renewable energy sectors. In the latter group, the highlight is on pipes used for oil and gas pipelines and for casing of wells.

According to the association, doubts remain if this trend will continue with an exchange rate below BRL 3.40 per dollar. In Abimaq’s assessment, the real appreciation against the North American currency throughout the first half “offset practically all the gains in competitiveness of domestic products” abroad.

The main destinations for Brazilian machinery and equipment were Latin America, Europe, United States and China. Abimaq underscored, however, that there was a decline in sales to Latin America countries, but a significant increase of exports to the Chinese market.

On the other hand, Brazilian imports of capital goods totaled USD 8.4 billion in the first half, a decline of 18.8% over the same period of last year. In June, however, the downtrend ended and foreign sales climbed 44% over the same month of 2015, reaching USD 2.32 billion. Until May, the monthly average of imports was USD 1.2 billion, according to the association.

Last month’s growth was driven especially by purchases of infrastructure and primary and processing industry machinery.

*Translated by Sérgio Kakitani