Brazilian exports down in July
Brazilian leather exports fell by 16.2% in July from the previous month. The decrease is said to have stemmed from increased costs of international freight, the unfavourable exchange rate of real to the dollar and a higher domestic demand. Increased competition from
Despite this Brazilian exports keep reaching record levels. The volume of 21,800 tons exported in July/04 is 36.2% higher than the 16,000 tons sold in the same period of 2003. This year’s sales have already reached 173,900 tons, 30.5% more than in the January-July period of 2003 which recorded exports of 133,200 tons. Exchange revenues are up by 22% at $663.6 million, a reflection of leather price highs in the international market. Brazilian average leather prices in July reached their highest level since the $4,223 per ton in August of 2003.
On the other hand, the sales of wet blue leather have shown a decline of 8.4% in the average price this year compared with 2003, despite the record volumes reaching 141,000 tons, up by 34% from 2003. Total revenues in this segment amounted to $266 million, a 23% growth. The strongest expansion has occurred in the segment of tanned and manufactured leather where the average price rose by 4% this year, reaching $12,104 per ton. Export volumes are also at a record high with a 16.7% expansion and 32,800 tons sold. Revenues reflect this trend at $397 million.
