Expectations for the import sector in 2022

Expectations for the import sector in 2022

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The year is nearing its end and it is clear that the expectations for the import sector in 2022 are shrouded in mystery. What will the economy present in the year to come, especially at a time when the pandemic, little by little, seems to be receding?

Moreover, you can’t forget that 2022 is a year of presidential elections and this influences the economic direction of the country.

In commercial terms, experts point out that the expectation for next year is to accommodate the price of commodities. But what else is coming? Check out this article to stay on top of it.

Trends in products for the import sector in 2022

 

The data show that imports in 2022 will follow the same pace as in 2021, driven by:

1-Chemical fertilizers;

2-Fuel oils and petroleum products or bituminous minerals;

3-Products from the manufacturing industry;

4-Medicines and pharmaceutical products;

5-Valves and thermionic tubes;

6- Telecommunications equipment;

7-Parts and accessories of motor vehicles;

8-Organic and inorganic compounds;

9-Other medicines, including veterinary;

10- Motors and non-electric machines.

importação 2022

 

Source: http://comexstat.mdic.gov.br/pt/comex-vis

 

With the fuel and energy crisis, petroleum products are likely to lead imports in 2022. Subsequently, medicines and pharmaceutical products will still have their protagonism, even with the most controlled pandemic.

Expected growth for countries

Market economic expectations for the coming year are marked by a period of turbulence. There is no shortage of reasons for this. The world still feels the effects of the pandemic, Brazil is living with high prices and an election appears on the horizon.

Still, in the midst of this scenario, it is already possible to get a sense of what 2022 reserves for the Economy, including in the import sector.

According to the OECD report, GDP growth projections are low and median for most countries. An example is China, which projects growth of 5.8% for 2022.

Countries in Europe such as France, Germany and Italy predict 4%, 6.6% and 4.1% respectively. The US projects 3.9% and Brazil with 2.3% growth.

The main highlight is India, which forecasts the highest percentage that reaches 9.9% for 2022.

Timid recovery trend for most markets

There is an expectation that there will be a slowdown in the world economy. This will influence the demand and prices of commodities exported by Brazil.

The acceleration of the economy in 2021 was a result of the advance of vaccination, the slight reduction of Covid-19 cases, the gradual reopening of cities and trade. However, next year, many believe that this breathing moment will be short.

High inflation does not point to a promising 2022 for the Brazilian economy, according to Agência Brasil.

Thus, the Central Bank will feel the need to increase interest rates, impacting the consumption of Brazilian families and the budget of companies.

The economy still predicts a lower growth in the population’s income. This low growth is motivated by the fact that unemployment is still high and that managers will gradually return to profits.

The hottest markets and imports in 2022

One hope for 2022 is that the influence of the problems related to the debt crisis in the Chinese real estate sector will be small.

A drop in the growth rate of domestic demand in China has everything to drastically decrease global GDP growth.

In this context, the most heated markets in the world economy, both for exports and imports in 2022, are expected to be in Europe and Asia.

However, for Brazil, the external sector will be the protagonist due to exports made possible by commodities and a strong demand from the United States and China.

As for the import sector, the expectation is good if the world economy gradually gets on track, returning to the pre-pandemic stage. Furthermore, imports in 2022 will help to warm the economy and will be essential to supply the domestic market.

Technology combined with logistics

In a market of uncertainties, the only promise is how much digitalization can help in logistics services, also bringing benefits to the export and import sectors.

With the use of software that allows you to trace routes, monitor products, interact with suppliers and choose the appropriate means of transport, it is possible to obtain satisfactory results in logistics services.

If the focus on digitalization is already essential now, the trend is to continue being in 2022.

It is possible to evaluate how Brazil’s economic scenario will be and imports in 2022

 The market will still be feeling the blows that Covid-19 has caused in the consumption of the population. In addition, there is the presidential election race, an event that normally shakes the market.

Sugar will be one of the products that will sustain the export segment and the expectation for the price of commodities is to suffer a reduction.

Therefore, the import sector in 2022 will still be able to breathe relieved, as it will have some good indexes.

Fruit import: 4 reasons for you to enjoy Brazilian production!

Fruit import: 4 reasons for you to enjoy Brazilian production!

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The import of fruit from Brazil may be a relevant point for several countries that wish to diversify their production with quality and flavors typical of the region.

Some nations even purchase food to be used in the base of their products, such as fruit puree and snacks. This is an interesting way to add variety to the sector, offering a more comprehensive range of options for consumers.

With the progressive dissemination of information via the internet, for example, the images and characteristics of typical fruits spread more easily, sharpening the taste of many.

It is a fact that it is still a challenge to find logistics suppliers that perform the import with agility and security, however, the benefits are many for those who can overcome some barriers.

In this content you will have access to 4 reasons to take advantage of Brazilian production, adding advantages to your business. Continue reading and find out!

Fruit import: here are some good reasons to join from Brazil

When choosing a country that will serve as a food supplier for your venture, it is essential to have some criteria in mind. Undoubtedly, in this sense, it is necessary to be attentive to the quality and ease of cultivation, factors that directly interfere with the success of any corporation.

Thus, it is worth looking at the production of Brazilian fruits, which has both crucial points, drawing the attention mainly of European traders.

In the cultivation field, aspects such as agricultural potential, due to the native lands and climate, attract those who crave opportunities to increase their profits.

Thus, the Brazilian market has generated good results, with ample capacity to grow if it is better exploited. This can be positive for international trade and that is exactly what we will talk about next.

Check out the 5 tips we’ve prepared for you!

1 Quality and variety of production

Unlike many countries, Brazil has a great diversity of unique fruits, typical of some states, such as Pernambuco and Bahia, two fruitful references.

One of the reasons for this scenario is due to the existence of crops scattered all over the place. After planting, high numbers of bananas, oranges, grapes, pineapples, apples and watermelons are usually obtained.

Other highlights in the production come from São Paulo, Bahia, Rio Grande do Sul and Minas Gerais. It is also worth mentioning the São Francisco Valley, which has irrigation technology and stands out in mango production and national table grape production.

Furthermore, the country has an advantage in the supply of tropical fruits because it has a temperate climate throughout much of the year, which is possible due to its territorial extension, geographical position and privileged soil.

2 Compliance with sanitary standards

In order to export from one country to another, it is necessary to comply with the sanitary and phytosanitary requirements of the importing country. The main requirements relate to measures to protect the health and life of humans and animals, preserve the integrity of plants and protect the territory.

In addition, one of the phytosanitary requirements relates to pest control, so it is important to choose a supplier that has valid certification in the sector, acting in accordance with the laws.

Indeed, there are efficient ways for producers to ensure compliance with the quality and safety of their fruits, through tools for monitoring, making it feasible to analyze if there is contamination, which is useful for both exporter and importer.

The truth is that with strict international standards, Brazil has been increasingly preparing to compete in the market and, obviously, this requires the certainty that no disease will enter through food.

3 Use of technologies

The other reason for the import of fruits to be attractive refers to the use of technology. This has become a demand of many farmers, who have invested in the modernization of the sector.

Thus, the aims is to increase production and obtain excellent harvests, which may occur through genetic improvement. The aid of technology can also serve to control the crop geographically in time and space, minimizing impacts on agricultural performance.

4 Competitive advantages

Finally, another reason to join the Brazilian production is due to the competitive advantages, after all, by adding more fruit options to the mix of products of your business, customers are satisfied.

So?

As we have seen in this article, the Brazilian market has the potential to expand from the cultivation and marketing of fruits through imports and exports.

This ends up being advantageous for countries at different levels, with respect to the increase in competitiveness that occurs through diversified products.

If you want to know how we can contribute to your fruit import, click below and request a freight quotation with us!

DC

How do you strike a balance between paper costs and import costs?

How do you strike a balance between paper costs and import costs?

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You’ve probably already heard that everything is a matter of balance, haven’t you? And this also applies to the import costs of the pulp and paper market.

Therefore, those who want to take advantage of the opportunities that the Brazilian scenario has to offer for these operations need to know how to keep the accounts balanced.

It is a fact that we are living in an atypical scenario, which reflects many changes in the economy and behaviors. This affects businesses on all sides, both those who want to sell and those who want to import.

So, due to our high experience in importing, we are sharing some tips that can contribute to those who want to improve financial health with negotiations and efficient transportation.

After all, we know the main needs of the market and we will share everything you need to do for this cargo to reach your business with minimal import costs!

The relationship of the Brazilian paper market and import costs

When navigating the opportunities that the pulp and paper market has to offer, it is important to know about Brazilian maritime shipping, one of the most important modes of transport when serving this segment.

In addition to the information we have already brought on the blog about paper imports, it is worth mentioning that, in the last ten years, according to a survey by the CNI (National Confederation of Industry), there has been a reduction of companies operating in Brazilian ports. Therefore, this has resulted in increased import costs, including increased freight.

Now, in addition, pulp and paper importers in Brazil also need to deal with the decrease in the number of ships available and scheduled stopovers, due to the effects of the pandemic.

To top it off, it is necessary to consider the fluctuations of the dollar in import costs. According to the study by economist Affonso Celso Pastore, shared by Valor Investe, the appreciation of the Brazilian Real will only be a reality in the face of future fiscal consolidation. That is, the Brazilian currency will remain weak in relation to the US dollar.

We must not forget the costs of the goods themselves. According to the Money Times, with data from Ágora Investimentos, future prices of Brazilian fiber pulp should reach USD 1,000 per ton, and prices of short fiber pulp can reach USD 800.

Also according to the study, the pulp cycle continues to increase, so he values should rise during the year. So, it is important to consider everything you can do to reduce import costs in this scenario.

How do you strike a balance between paper costs and import costs?

It is important to consider everything you can do to reduce import costs in the pulp and paper market.

How do you balance import costs from Brazil?

Correct planning

Reducing import costs through logistics planning is a reality, as we have already published here on the blog. Therefore, it is very important to be assertive when defining logistics partners and stipulating the flow of information and pulp and paper goods.

The more aligned those involved in the operations are, the less risks will threaten the activities, contributing to meeting deadlines, cost and quality of service.

So, before choosing any freight forwarder, consider your business references, level of services, available communication channels and the portfolio of solutions offered. All these factors will influence import costs.

 

Expertise in tax documents and requirements

To avoid customs fines, it is important to conduct a detailed tax analysis. To do so, rely on professionals with documentation experience so that the efficiency of international logistics is not affected.

It is also essential to check the variety of the long-term freight contract as well as freight contracts for this commodity, which when exclusive, guarantee financial advantages.

 

Extend networking

Another factor that influences the import cost is the way the freight forwarder relates to other professionals in the market.

This is because, when it presents a wide logistics networking network, it is easier to rely on solutions in each adversity presented. So the risks of high costs in unforeseen situations decrease.

Thus, knowing who to count on and the quality of care reflects on the economy when importing from Brazil.

 

Invest in technology

The more technology, the more agility and precision and the lower the import costs. Therefore, relying on modern tools for monitoring information, with the possibility of knowing the status of the cargo in real time, allows transportation to occur with more flexibility and savings.

 

You are about to find the balance between paper and import costs!

At DC Logistics Brasil, our team contributes to reducing the import costs of pulp and paper from the high market expertise.

This reflects in scalability to ensure space for the international logistics operations you need.

Furthermore, we present the best-cost benefit along with competitive conditions for everyone involved, from trading companies, to importers and final agents.

To learn how we can contribute to your paper imports, request a freight quotation with us with no commitment!

 

SOURCES:

CNI – https://noticias.portaldaindustria.com.br/noticias/economia/exportacao-de-conteineres-cresce-48-desde-2010-mostra-levantamento-da-cni/

Valor Investe – https://valorinveste.globo.com/mercados/brasil-e-politica/noticia/2021/03/08/alta-de-juros-ter-pouco-ou-nenhum-efeito-sobre-o-cmbio-diz-pastore.ghtml

DC Logistics Brasil – https://dclogisticsbrasil.com/reduzir-custos-na-importacao/#:~:text=Para%20reduzir%20custos%20na%20importa%C3%A7%C3%A3o,fluxo%20de%20informa%C3%A7%C3%B5es%20e%20mercadorias.

Money Times – https://www.moneytimes.com.br/produtores-surfam-corrida-da-celulose-com-acao-a-disparar-ate-35/

Paper Imports: Check out promising data and insights from this vertical in Brazil!

Paper Imports: Check out promising data and insights from this vertical in Brazil!

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Look around and answer: How many objects can you identify nearby that are made of paper? With this quick assessment, it is already possible to realize the importance of the business related to your paper imports, isn’t it?

According to researchers, paper was invented in 105 AD in China. It has been present for thousands of years in countless activities of our routine, in different ways and in different nations.

Even with the intensification of the use of technologies, this market is constantly expanding and increasingly globalized. The demands for paper and pulp were high at the end of 2020, according to large companies in the sector, for example.

And the trend is that the recovery of the world economy, aligned with new consumption habits, add positive impacts.

In this sense, those who are following the opportunities of this vertical market know that they find many advantages when importing from Brazil, since the country has great representation in the sector.

Therefore, today we will present more information on the Brazilian Pulp and Paper segment, to prove how much it is worth expanding your negotiations with Brazil and investing in efficient paper transportation logistics. Check it out!

Learn about the scenario and trends in paper imports from Brazil

Senai Tecnologia e Informação, an important institution of Brazilian industry, listed the main trends in the pulp and paper market in 2021. See which scenarios are receiving the most investment and attention right now:

  • Creation of solutions and use of cellulose fibers to replace plastic;
  • Use of biodegradable and re-pulpable solutions to avoid application of petroleum-derived coatings;
  • Increased use of lignin and other materials such as fine particles, shells, dregs, and boiler sand;
  • Application of nanotechnology in products;
  • Increased use of technologies for predictive maintenance and other production processes.

We must not forget that, as shared in the content of O Papel Magazine, published by the ABTCP (Brazilian Technical Association of Pulp and Paper), the consumption of products related to the tissue paper and packaging sector has skyrocketed since the beginning of the pandemic.

This is because, they meet the needs of hygiene and cleaning, as well as quality in food storage and the delivery and shipping of online purchases. These behaviors and consumption have been intensified around the world during the challenging period we are experiencing.

And today, investments in technologies in factories in the sector boosts competitiveness. For this modernization, businesses are importing a lot of equipment, which is a trend in this market.

In Brazil

According to a survey shared by Senai Tecnologia e Informação, the Pulp and Paper market is considered one of the pillars of the national economy and almost all production is sent overseas.

Therefore, exports exceed paper imports and represent 67% of the national production volume, according to information shared in the “Panorama of Brazilian Pulp and Paper Imports in Brazil”, Sinpacel (Union of Pulp and Paper Industries of Paraná).

The port of Santos, in São Paulo, is one of the main supports of this market in the country, as maritime transport is the one most used by the segment. Paraná also receives high volumes of operations involving the transportation of cellulose, by road and also by sea, through Paranaguá.

It is worth remembering that, as shared by the Brazilian government agency BNDES, through the ” 2030 Industry Panorama – Paper and Pulp”, Brazil is a country with high efficiency in pulp production.

Thus, competitiveness is benefited by climatic conditions, which are favorable for forest development, as well as by the long history of investments of companies in the sector.

Therefore, since the 1990s, the Brazilian pulp and paper market has only tended to grow. Those who are abroad and follow these scenarios, are able to gain advantages in imports, which reflect in more profitability.

The BNDES also notes that the standard of globalized competition of the pulp and paper industry should remain that of a competitive oligopoly. As such, while some groups hold large shares of the market, other smaller ones compete in environments of free price formation.

With digitization, does paper run the risk of ending?

This is a fairly common discussion when it comes to paper. As there are more and more technologies that allow the replacement of this material in everyday life, many believe that paper will go into disuse in the future.

In the meantime, do you remember our evaluation at the beginning of this content? So after years of inventing computers, tablets and smartphones, paper remains with us. Thus, we can see that its use is still important in many activities.

Nowadays, paper consumption occurs consciously. Technologies contribute to sustainability. So, many digital processes ended up replacing paper and avoiding waste.

However, paper is a recyclable material, so it can be reused after chemical processes. To top it off, it can be produced from reforestation raw materials and environmental certifications. All this contributes to the demands of a greener future.

Therefore, it is not possible to say whether the paper will disappear from our daily lives in the near or more distant future. However, it is important to emphasize that its importance is currently fundamental for many sectors of society, and that environmental responsibility is increasingly present in their productions.

We will help you take advantage of the opportunities in Brazil

By viewing the figures and opportunities in the sector, which is increasingly globalized, it becomes clearer by creating assertive strategies and taking advantage of the scenarios in favor of businesses related to paper imports.

This is because the Brazilian market is one of the main ones to serve pulp and paper businesses worldwide, contributing to the good results of the sector worldwide.

However, to use all the opportunities that the paper market has to offer in one’s favor, it is important to prioritize some factors, such as the quality of international logistics involved in the business.

The form and speed of your work when supplying your customers in this segment, directly reflects on your competitiveness.

Thus, with efficient logistics solutions, it is possible to meet the demands and thus increase profitability in paper imports. And we can help you with this!

Our team is prepared to carry out cargo movements strategically and with high performance, to overcome the main logistics challenges of this vertical market, from shipment to delivery.

The technologies used in our processes contribute to optimize the time of operations, as well as so that you work with the best cost-benefit ratio when importing from Brazil.

This is because our unique know-how on the procedures of the world’s leading paper mills ensures a workflow with excellence already recognized by customers in 186 nations.

With DC Logistics Brasil’s paper and pulp transportation logistics solutions, you will have a specialized freight forwarder prepared to offer the best market expertise in a single operation.

If you have any questions about the matter, click here, perform a small registration, and we will contact you to clarify your questions!

 

SOURCES:

UOL Economia – https://economia.uol.com.br/noticias/reuters/2020/10/27/demanda-por-papel-e-celulose-segue-elevada-com-estoques-baixos-diz-klabin.htm

SENAI – https://www.senaipr.org.br/tecnologiaeinovacao/blog/tendencias-de-mercado-2020-celulose-e-papel-1-36287-427710.shtml

Sinpacel – https://www.sinpacel.org.br/informativos/2016/683/panorama-das-importacoes-brasileiras-de-celulose-e-papel-no-brasil.pdf

ABTCP – http://www.abtcp.org.br/boletins/abtcpcovid/PanoramaPOYRY_julho.pdf

BNDES – https://web.bndes.gov.br/bib/jspui/bitstream/1408/14241/2/Panoramas%20Setoriais%202030%20-%20Papel%20e%20celulose_P.pdf

Singapore expands number of approved Brazilian chicken producers

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Singapore has granted four Brazilian slaughter houses to export
chicken to the country, and one to export pork. Currently,
Singapore is among the four largest buyers of Brazilian pork and
among the ten largest chicken importers. The approved chicken
slaughter houses included two JBS units and one Frango Pioneiro,
in the state of Parana, plus Vibra Alimentos, in the state of Minas
Gerais. The pork producing unit belongs to Cooperativa Languiru,
in the state of Rio Grande do Sul.

The number of vessels waiting to load sugar at Brazilian ports fell
from 29 to 17 over the last week, according to Williams, a ship
agency. 499,000 tons are scheduled to load, out of which 45% will
be loaded in the port of Santos, 44% at Paranagua, and 11% at
Maceio.

Brazilian beef exports reached 1.3 million tons between January
and November 2016, exceeding 2015 volumes over the same
period by 1.7%. Revenues, however, fell 6% in the same
comparison, to US$5 billion. According to Abiec, an industry
association, exchange rate variation has been largely responsible
for the drop.

Brazil’s autoparts trade balance has registered a US$4.9 billion
déficit between January and November 2016, a 14.2% drop than
that registered in the same months of 2015. Exports reached
US$5.98 billion while imports stood at US$10.9 billion, a 14.8%
and 13% drop respectively. Argentina remains the main
destination for Brazilian exports, at 28.5% of the total.

Source: Datamar

Brazil and US sign deal to end cotton dispute

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Brazil and the United States entered into an agreement to settle the trade controversy over subsidies paid by the US government to the country’s cotton farmers.

Brazil’s Ministry of Foreign Relations reported that the two countries signed a memorandum of understanding on the cotton dispute on Wednesday (Oct. 1st), in Washington, “successfully settling a dispute that stretched for more than a decade.”
Foreign Minister Luiz Alberto Figueiredo traveled to the US alongside the Minister of Agriculture, Livestock, and Supplies, Neri Geller, to close the deal and sign the memorandum. In a statement, the Foreign Ministry said that “the bilateral agreement includes additional payments of $300 million, with flexibility for the allocation of resources, which helps to mitigate the losses sustained by Brazilian cotton farmers.”
Since the agreement applies to the cotton industry only, Brazil will still have the right to challenge the US Farm Bill before the World Trade Organization (WTO) regarding other crops.
The cotton dispute began in 2002, when Brazilian cotton farmers asked the government to file a dispute settlement case with the WTO challenging the fairness of subsidies granted by the US government to American cotton farmers and export insurance programs. The US incentives were found to be trade-distorting based on the WTO’s Agreements on Agriculture and Subsidies and Countervailing Measures.
In 2009, the WTO allowed Brazil to retaliate the US by up to $829 million. Since retaliation could have other negative impacts and would not directly benefit cotton farmers themselves, an agreement was reached whereby the US would have to pay $147.3 million every year to the Brazilian Cotton Institute created to manage the funds. In October last year, however, the payments were suspended following the passing of a new farm bill by the US Congress.
The new law maintained the payment of subsidies, violating international trade rules. As Brazil’s Foreign Ministry now reports, “under the Memorandum signed today, the United States pledged to make adjustments in its credit and export guarantee program GSM-102, which will operate within the parameters negotiated bilaterally, thus providing better conditions for the competitiveness of Brazilian products in the international market.”
Source: Agencia Brasil

 

Oil and gas output breaks record in August

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Brazil’s total production of oil and natural gas in August added up to a daily 2.89 barrels equivalent per day (boe/d): 2.326 million barrels of oil per day (bo/d) plus 90.9 million m³ of natural gas everyday (m³/d). According to the National Agency for Petroleum, Natural Gas and Biofuels (ANP), this is the highest volume ever observed, surpassing the previous month, when the production of oil and natural gas amounted to 2.82 million boe/d.

ANP announced that the oil output also went beyond last month’s 2.267 million bo/d. There has been a rise of 2.6% in the oil output compared to July 2014, and 15.7% against August, 2013. Its natural gas counterpart was 3.4% higher than the rate reported in July 2014 (87.9 million m³/d), and 18.1% above the figure for August 2013.
The presalt production expanded 11% compared to the previous month, totaling 647 thousand boe/d, or 533 thousand bo/d and 18.1 million m³/d of natural gas. The production stemmed from 35 wells, located in the oil fields of Baleia Azul, Baleia Franca, Jubarte, Barracuda, Caratinga, Linguado, Lula, Marlim Leste, Pampo, Sapinhoá, Trilha and in the areas of Iara and   Entorno de Iara.
The use of natural gas in the month stood at 95%, and its burn rate at 4.549 million m³/d—an increase of approximately 1% against the month before, and 38.5% against August 2013. The main reasons for the increase in the amount of natural gas burnt were the platforms P-55 and P-62, located in the Roncador Field, which has recently become operational.
Source: Agencia Brasil