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Trade balance reaches US $ 28.369 billion surplus until July

Foreign trade

Trade current reaches US $ 231.424 billion

The Brazilian trade balance had a surplus of US $ 28.369 billion from January to July 2019, according to data released on Thursday (1/8) at a news conference held by the Special Secretariat of Foreign Trade and International Affairs of the Ministry of Economy (Secint). , in Brasilia (DF). The positive balance was 16.3% lower than the same period of 2018 (US $ 33.891 billion), by the daily average. 

The trade flow for the year reached US $ 231.424 billion, a 3.1% decrease over the same period last year (US $ 238.794 billion), by the daily average. Exports from January to July were US $ 129.896 billion, down 4.7% over the first seven months of 2018. Imports were US $ 101.527 billion up to July, 0.9% below the daily average in the same period of the previous year. previous year of $ 102.452 billion.

In the month
of July The surplus in July was US $ 2.293 billion, 43.4% lower than in the same period of 2018 (US $ 3.874 billion). The Brazilian trade flow reached US $ 37.815 billion in the month, a decrease of 12.2%, by the daily average, compared to the same period of the previous year. 

Exports in the month reached US $ 20.054 billion, a 14.8% decrease compared to July 2018, and a 8.1% fall over June 2019. Imports totaled US $ 17.61 billion, down 8%. 9% over the same period of the previous year, and increase of 12.6% compared to June this year, always by the daily average.

Analysis
According to the Secretary of Foreign Trade Intelligence and Statistics, Herlon Brandão, the July results reflect the lower world economic activity, which decreases the demand for products traded by Brazil.

"This affects the quantities and prices of exported goods. We have a lower demand, for example, from China for Brazilian soybeans, due to the lower production of the Chinese pork herd, due to health problems. That means that we buy less food for animal feed ", he detailed.

Herlon further explains that the July 2019 data were influenced by a higher comparison base due to the July 2018 export of a $ 1.2 billion oil rig.

Even with the high basis of comparison, in July 2019 two products were decisive, according to him, for the fall of the trade flow: the reductions in soybean and oil shipments, both in volume and in price. Brazilian crude oil shipments fell 61.2% in July this year compared to the same period last year. Already the soybean presented fall of 35%, in the same comparison.

"Oil has to do with the slowdown in the world economy and this has caused international prices to fall. Soybeans is more related to the issue of sanitary problems in China. We know that the main use of Brazilian soy by the Chinese is for food. and there is a large decrease in pork production in China. This impacts demand for soy, "explains Herlon.

Exports
July exports were driven by commodities ($ 11.054 billion), manufactured goods ($ 7.198 billion) and semi-manufactured goods ($ 2.403 billion). Over the previous year, there was a reduction in the three categories: basic products (-16.7%), manufactured goods (-12.3%) and semi-manufactured products (-4.6%).

In the basic group, as of July 2018, sales declined mainly in crude oil (-61.2% to $ 1.407 billion); soybeans (-34.6% to $ 2.788 billion); copper ore (-32.7% to $ 216 million); soybean meal (-28.9% to $ 539 million); chicken meat (-12.5% ​​to $ 602 million) and beef (-10.4% to $ 515 million).

In manufactured goods, the balance fell in sales of parts of engines and aviation turbines (-45.9% to $ 144 million); cargo vehicles (-33.6% to $ 131 million); auto parts (-16.2% to $ 142 million); unfrozen orange juice (-10.3% to $ 124 million); passenger cars (-8.7% to $ 347 million); earthmoving machinery and equipment (-5.8% to $ 222 million) and fuel oils (-2.2% to $ 289 million).

In semimanufactured goods, sales fell mainly from crude soybean oil (-49.1% to $ 78 million); copper cathodes (-26.5% to $ 39 million); semi-manufactured iron / steel products (-15.5% to $ 378 million); pulp (-12.9% to $ 550 million); sawn or split wood (-4.6% to $ 55 million) and raw sugar (-4.4% to $ 478 million).

Year-to-date, exports of manufactured goods (-6.5% to $ 45.035 billion) and semi-manufactured exports (-2.7% to $ 17.055 billion) declined, while sales of commodities increased (+0 , 2%, to US $ 67.798 billion), compared to the same period of 2018.

Buyer markets
The decline in exports in the month was driven by Mercosur (-37.5%), reflecting the 31% drop in sales to Argentina, due to passenger cars, cargo vehicles, soybeans and auto parts, among others. other products.

There was also a reduction for Central America and the Caribbean (-29.0%), Asia (-20.7%) and the European Union (-19.8%) - in the European case, mainly due to crude oil, bran soybeans, iron ore, semi-manufactured iron and steel.

Already for Oceania (+ 23.8%), Middle East (+ 19.8%), Africa (+ 13.3%) and the United States (+ 5.9%) exports increased - especially the latter. , items such as gasoline, airplanes, ethanol, coffee beans, motors, generators and electrical transformers.

The main destination countries for Brazilian products in July were China, Hong Kong and Macau (US $ 6.002 billion); United States ($ 2,672 billion); Argentina (US $ 836 million); Netherlands ($ 785 million) and Japan ($ 603 million).

Imports
Imports in July increased by fuels and lubricants (+ 22.0%), intermediate goods (+ 4.9%) and consumer goods (+ 1.0%), while purchases of capital goods decreased (- 53.0%).

Compared to July 2018, purchases from Asia (-23.9%), Central America and the Caribbean (-23.9%), Africa (-15.7%) and Mercosur (-7.9%) decreased. On the other hand, those from the Middle East (+ 67.7%), the United States (+ 19.7%), Oceania (+ 13.8%) and the European Union (+ 2.0%) increased.

The top five supplier countries for Brazil in the month were the United States ($ 3.143 billion), China, Hong Kong and Macau ($ 2.868 billion), Germany ($ 974 million), Argentina ($ 907 million) and Japan. ($ 547 million).

Year-to-date, compared to the same period of 2018, there was a fall in capital goods (-12.1%) and consumer goods (-5.3%). But purchases of intermediate goods (+ 2.6%) and fuel and lubricants (+ 2.3%) increased.