China surpasses the US as main export destination
Valor Econômico 04/02/2009
China surpassed the United States and became, in March, the main destination of the Brazilian exports, with imports of US$ 1.7 billion in Brazilian products, mainly iron ore, soy, airplanes and sugar. The extraordinary increase in the purchases of iron ore by China is intriguing experts. So far, nobody knows whether the phenomenon will be sustainable, contributing for better results of the Brazilian foreign trade or whether it is only a consequence of the replacement of the stocks, which can mean a deterioration of the Brazilian trade balance ahead. In January and February alone, the purchases of iron ore increased 44%.
The total of Brazilian exports to China increased 135% in March, on the average, per day, compared to March 2008. In the first quarter, the increase reached 63%. The purchases of Brazilian soy, even before the harvest, also influenced such result. The sales were favored by the restrictions imposed by Argentina to the sale of the local soy, the lower prices compared to last year's and the interest of the Brazilian exporters to ship their stocked soy to take advantage of the price level (lower, but still considered very good). The sales of soy to China had already increased nearly 340% only in the first two months (the lower basis of comparison and the strike of the Brazilian customs held in the beginning of last year contributed for the impressive figure). Still without the per country discriminated data, the sales of Brazilian soy increased 57% in March. The sales of Embraer airplanes to Chinese companies were also a relevant item in the export list to China. The United States, main Brazilian client, showed the effects of the crisis and reduced their purchases of Brazilian products by 40%. Should they have kept the same performance of March of 2008, they would have remained in first place among the purchasing markets of the country. Regardless of having suffered a fall, in total, the results of the exports present good performance in Asian and African countries, some of which have benefited by the actions of foreign policies of approach to local governments. In Sudan, for instance, the Brazilian sales increased almost 50%, mainly in motor graders, tractors, sugar and tobacco.