logo-footer.png (2)

Analysis and Studies - Country Analysis

Brazil: a look at the market

By SkyMinder Sales Enablement Team June 11th 2024

Brazil, whose capital is Brasília, is a federal presidential republic, which gained independence from Portugal in 1822. This led to a gradual abolition of slavery and in 1889 monarchy was deposed and Brazil became a republic. However, it wasn’t until 1988 that the country adopted its current constitution, after decades of alternating between dictatorial and democratic phases with Getúlio Vargas and military dictatorship.

It’s the largest and most populous country in South America and in the early 21st century was recognized as one of the world’s strongest emerging markets. But later the country faced a challenging phase, due to unemployment and high inflation, in addition to bribes and corruption.

Nowadays Brazil is an independent global leader on climate change and promotes sustainable development, actively working to fight against deforestation through projects that aimed at promoting economic growth.

Brazil has a high level of specialization in Soybeans ($47.2B), Ground Nut Oil ($277M), Raw Sugar ($11.5B), Pig Iron ($2.3B), and Soybean Meal ($10.4B).

 

 

 

In 2022, Brazil was the 25th market in total exports with a trade of $341B, the 26th in total imports with a trade of $270B.

The most exported product was Soybeans with a trade of $47.2B, ahead of Crude Petroleum ($43.1B), Iron Ore ($30.1B), Refined Petroleum ($12.9B), and Corn ($12.4B), with the top destination being China (26.4%), followed by the United States (10.7%), Argentina (4.51%), Netherlands (3.45%), and Spain (2.87%).

The export economy is highly diversified in terms of products, focusing on raw materials and agricultural goods: in fact soybeans are the top product but it’s only the 13.8%. As far as concerns the countries, there’s a heavy reliance on China but is also balanced across North America, Europe, and Asia.

China is the major importer of three of the top five exports, highlighting its significant role in global trade, especially in raw materials. This dependence makes Brazil vulnerable to shift in geopolitical and economic landscapes.

The United States is a significant importer for crude petroleum and refined petroleum, reflecting its large energy consumption and refining capacity. The Netherlands frequently appears as an important trading partner for various products, underscoring its importance as a central hub in European trade.

  1. Soybeans (13.8%): 67.5% China, 4.01% Spain, 3.55% Thailand, 2.88% Iran 2.37% Netherlands, 0.38% Argentina –
  2. Crude Petroleum (12.6%): 39% China, 11.8% United States, 8.3% Spain, 7.42% Chile, 5.93% Portugal, 5.01% Netherlands, 4.32% India, 3.39% Singapore
  3. Iron Ore (8.84%): 60.4% China, 5.02% Malaysia, 3.76% Japan, 2.2% Netherlands, 1.87% Argentina, 1.52% United States, 1.12% Egypt
  4. Refined Petroleum (3.77%): 45% Singapore, 7.83% United States, 6.86% Netherlands, 3.63% Panama, 3.47% Liberia, 2.79% Argentina, 2.53% Spain
  5. Corn (3.63%): 16.2% Iran, 11% Spain, 10.9% Japan, 8.65% Egypt, 5.66% Colombia, 5.22% South Korea, 3.98% Mexico, 2.07% Netherlands, 0.29% United States

 The most imported product was  Refined Petroleum with a trade of $23B, followed by Crude Petroleum ($8.78B), Motor vehicles; parts and accessories ($7.96B), Potassic Fertilizers ($7.59B), and Mixed Mineral or Chemical Fertilizers ($7.44B), importing mostly from China (23.7%), ahead of the United States (18.3%), Germany (5%), Argentina (4.69%), and India (3.63%).

The import economy shows a balanced global trade network with a mix of energy, industrial and agricultural products. There’s a heavy reliance on refined and crude petroleum, highlight the importance of energy imports, but the diversity of suppliers is notable, with key contributions from North America, Asia, Europe, and the Middle East.

Motor vehicle parts and accessories imports show strong automotive trade relationships with major manufacturing countries.  

Even though China and United States are the largest exporters, they don’t dominate the imports landscape for the most important products.

Exporting high-value raw materials like soybeans, crude petroleum and iron ore while importing refined products and industrial goods such as refined petroleum, motor vehicle parts and fertilizers suggests a trade strategy focused on exploiting natural resources while importing necessary industrial and agricultural supplies. The significant export of refined petroleum, despite being a major import, suggests a complex industry for refining and re-exporting or a strategic role in distributing energy globally.

  1. Refined Petroleum (8.52%): 52.1% United States, 15.3% India, 9.4% United Arab Emirates, 5.02% Netherlands, 4.49% Russia, 3% Saudi Arabia, 0.41% Argentina, 0.15% Germany, 0.12% China
  2. Crude Petroleum (3.25%): 31.9% Saudi Arabia, 26% United States, 12% Nigeria, 6.14% Angola, 5.88% Algeria, 4.82% Argentina, 2.95% Peru
  3. Motor vehicles etc. (2.95%): 13.3% China, 11.5% Japan, 11% Germany, 9.07% United States, 8.16% Mexico, 4.88% Argentina, 4.09% Netherlands, 3.82% India
  4. Potassic fertilizers (2.82%): 30.4% Canada, 29.7% Russia, 10.1% Germany, 5.41% United States
  5. Mixed mineral etc. (2.76%): 28.8% Russia, 17.8% United States, 16.6% Morocco, 11.3% China, 8.93% Saudi Arabia

 Between 2021 and 2022, as far as concerns the exports, the country which has a fastest growth was the United States, with an increase of $4.41B, ahead of Spain ($4.33B) and Argentina ($3.43B).

 

 

  1. United States: from $32.2B to $36.6B
  2. Spain: from $5.45B to $9.78B
  3. Argentina: from $12B to $15.4B

Whereas the country which grew the fastest in imports was China with an increase of $9.81B, followed by United States ($9.61B) and India ($2.96B).

 

 

  1. China: from $54.2B to $64B
  2. United States: from $39.8B to $49.4B
  3. India: from $6.82B to $9.78B

Sources:

https://oec.world/en

https://www.cia.gov/the-world-factbook/countries/