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Contribution of Vale and Petrobras to Brazilian Exports Tumbles
08/11/2015 - 09h12
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RENATA AGOSTINI
FROM SÃO PAULO
Brazil's two largest exporters, Vale and Petrobras, are currently suffering from a fall in value in their products that has seen their contribution to Brazilian exports fall drastically.
In the first six months of this year, the companies accounted for 11% of Brazilian exports, the lowest share in ten years.
In contrast, the figure for the first semester of 2011 stood at nearly 25%, with Brazil setting a new record for exports that year.
The performance of these two companies is vital for Brazil's foreign trade. From January to June, Brazil sold US$16.2 billion less than during the same period last year. 43% of this reduction is the result of the fall in revenue in Petrobras and Vale.
The bitterest losses have been in Vale. While production has increased, prices have fallen dramatically - the average price of a tonne of iron ore this year is US$42.69, compared to US$89.55 last year.
In Petrobras, the poor performance is the result both of a fall in production and the global fall in oil prices (the average price has fallen by 48.5%).
However, the results are not isolated. Among Brazil's 40 largest exporters, just 14 increased their sales in the first semester, compared to 25 in 2014.
COMMODITIES
Brazil's continuing dependence on exporting raw materials helps to explain current poor performance. Aside from iron ore and oil, the prices of soya, corn, sugar and beef have all fallen when compared to the first semester last year.
Translated by TOM GATEHOUSE
Read the article in the original language
Sergio Moraes - 16.dez.2014/Reuters | ||
A view of the Petrobras headquarters in Rio de Janeiro |