Brazil concerned about trade with China
Brazil’s tanning sector is paying the price for the sporadic lockdowns in China owing to Beijing’s zero-covid policy.
China is the most important buyer of Brazilian leather, but figures show Brazil has suffered when it comes to leather exports from the fits and starts caused by lockdowns and interruptions to logistics in the first seven months of 2022. Leather shipped to China (including Hong Kong) fell by 23.9%.
Exports of leather to Brazil’s second and third largest customers, the US and Italy, in the first seven months of 2022 show a different picture.
US buyers increased purchases of leather from Brazil by 19% and shipments to Italy were up by 12% compared to the same months in 2021.
The January-July partial balance, however, is revealing. The $858.3 million worth of leather exports shipped by the Brazilian tanning industry, is down by 6.9% compared to the same seven months of 2021.
