Two opposite movements set the tone for Brazilian leather exports this year. If on the one hand there is an increase in the area sold to the foreign markets, keeping plants fully active around the country, the result in US dollars shows a decrease because of the exchange rate, making it difficult for new deals to be closed.
In July, 14.865 million square meters were sold to foreign markets (increase of 4.3% in comparison to July last year), reaching a total of US$ 159.2 million (13,5% fall in relation to the same month in 2015). Figures come from the Department of Foreign Trade, following analysis carried out by the Department of Commercial Intelligence at CICB (the Centre for the Brazilian Tanning Industry).
This year’s trade balance show a very similar scenario: from January to July, the area sold overseas has grown 9%, while values have decreased 15.6%. The Brazilian leather sector highlights the exchange rate variation from the last few months as one of the prevailing factors for the industry’s current situation, despite all major efforts to maintain exports on track.
Rio Grande do Sul, São Paulo and Goiás are the major Brazilian exporter states. China / Hong Kong, Italy, the US and Vietnam are Brazilian leather’s main destinations.
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