The Brazilian exports of ornamental rocks and cladding surpassed the figure of US $ 1000 million and 2.5 million tons in 2006. This represents a positive variation of 32% in revenues and 20% in volume with respect to 2005. This data is coherent with the still positive situation of the world economy and does not reflect the effects of the slowdown in the United States residential construction market.
The exports of processed stone, both finished and semi-finished, add to US $ 831 million, and represent almost 80% of total exports. In volume, processed stone exceeds 1 million tons and represents almost 50% of the total exports.
The export of blocks and sawed slabs of quartzite and, above all, granites, reached the figure of US $ 212 million and 1.2 million tons, which amounts to 20.32% and almost 50% respectively, of the total exports. The exports of blocks and sawed slabs of marble and other similar rocks were US $ 1.74 million and slightly more than 10000 tons, constituting 0.17% and 0.41%, respectively, of total exports.
Almost all the main commercial products of the sector underwent a significant increase in average price in exports during 2006. The main factor was the re-adjustment of prices for exporters to adjust for the constant devaluation of the dollar. The increase in average prices of the products of the sector continue to reflect the still strong demand in the international markets and the increase in the share of finished products, with added value, in the exports. The main factor is related to the re-adjustment of the prices done by exporters to account for the constant devaluation of the dollar.
The significant reduction in profit margins resulting from this situation led the lessening of the number of exporting companies in the years 2005 and 2006.
Of total exports, the six most important groups of commercial products are, in decreasing order of sales:
The processed slabs and finished products in granite and similar rocks constitute more than 65% of total export sales and registered growth of 35% compared to 2005. The greatest increase in sales (+91.17%) was registered in the products of soapstone, while the smallest change took place in solid quartzite (+1.6%).
The state of Espiritu Santo continues to be the leader in exports, representing 65% of sales and 56% of volume of the total of the country.
The United States continues to be the main destination for the Brazilian exports of the ornamental rocks sector. In 2006, more than US $ 630 million and 824 tons accounted for 60% of sales and 32% of volume in exports, respectively. It must be highlighted that more than 99% of both sales as well as volume of exports to the United States are composed of processed stone, with added value.
With the application of the indices of growth to the development of exports and in the internal market in civil construction, it is estimated that the Brazilian production of ornamental rocks has increased from 6.9 million tons in 2005 to 7.5 million tons in 2006. The Brazilian production of rocks aimed the external markets passed from 39.5% in 2005 to 43.4% of the total production in 2006, while production for the local market decreased from 60.5% to 56.6%. That is to say, due to this growth, the recent increase in exports assured the survival of all the segments of activity in the production chain of the ornamental rocks sector of Brazil, compensating for a prolonged period of cooling of demand in the internal market.
As a result of the devaluation of the dollar and the increase in the size of the local market, the rate of growth of Brazilian imports of ornamental rocks exceeded the rate of exports. The imports reached a figue of US $ 29.31 million and almost 62000 tons, which meant an increase of 36.35 % and 20.75%, respectively compared to 2005.
Just as there has been a positive variation in the average price of the main Brazilian exported products, there has also been a revaluation of the main imported materials.
The imports of rocks in 2006 returned to levels similar to that in the second half of the decade of the nineties, for example, in 1997 they reached US $ 28.5 million and 62000 tons. If they maintain the current rate, imports in 2007 will continue to grow and ought to exceed that of 1998 when it was US $ 32.4 millions and 73500 tons.
The rate of growth of exports of stone from Brazil ended the year 2006 with 32.3%, which has meant sales of US $ 1000 millions. For 2007 a lesser growth to that of 2006 is expected, not more than 15% in volume.
In 2007 no significant change in interest rates is expected (which will continue to be high), neither in the exchange rate (the real may continue to strengthen), inhibiting the investors, making exports difficult and imports easier. For the stone sector, these internal limitations are in addition to the decline in demand from the residential market in the United States and a certain deccelaration in the world economy.
The exports of polished slabs of granite and similar products would be the most affected, since they are destined more for the unifamiliar residential real estate market than the no residential or the plurifamiliar market. The no residential market is the preferred space for the installation of finished products.
They are various factors that influence the development of exports of stone in 2007. We can highlight the following:
In the internal market, the rate of increase in demand of cladding materials ought to be 8-10% with respect to 2006, thus translating into internal consumption of around 60 million square metres per year of stone and cladding.
Report elaborated by Cid Chiodi Filho- Kistemann & Chiodi Assessoria e Projetas , for ABIROCHAS-Brazilian Association of the Industry of Ornamental Rocks, in January, 2007. The data on exports have been obtained from the base ALICE.
Article published on LITOS Printed Edition, nº 88, March / April 2007
Articles
Photoreports
Trade fairs
Stockmarket
Dictionary
Moralemeter
Print Edition
Subscription
Contact Us
HOME PAGE
Last Updated: July 2008
 |
This
site © Copyright Publicaciones Litos S.L., Spain |