The month of May made a bounce back in performance, moving back on the green end of the scale for export volumes (+31.4%) as well as for the variation of foreign revenue, even if on a smaller scale (+5.6%). Brazil’s tanning segment can finally breathe a sigh of relief. But the situation, as denounced by the English and Italian performances remains problematic. Because, as reported by Secex’s data, which was elaborated by CICB, the association representing Brazil’s tanneries, the trend for the first 5 months of the current year remains negative.
Golden May
May was a positive month, as we were saying. Brazil sold 15.8 million square meters of leather abroad (raw hides, semi-finished and finished leather), equal to a 31.4% increase in comparison to the same period of 2018. The South American country collected 107.1 million USD, a value 5.6% larger than the previous year on yearly base.
The Period
The result for the January – May period is negative: exports decreased drastically in value (540.6 million, equal to a -18.4% performance), while volume remained fairly stable at +3.6% (80.9 million square meters) thanks to May’s exploit. Looking at the different types of leather, data shows that in the first 5 months of the year salted leather gained 20.9%, wet blue lost 24.5% and finished leather performed at -15.7%.
Reference markets
The China – Hong Kong conglomerate, as well as Italy, all purchased less leather from Brazil (-22.9% and -10.9% respectively), yet increasing their volume of purchases (+12.3% and +4.1%). On the other hand, US clients remained more coherent, importing 21.7% less in value and -10.3% in volume.
