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Decline of footwear exports softens in June

After four consecutive months of decline, footwear exports increased once again in June in relation to the previous month.  According to data prepared by the Brazilian Footwear Industries Association (Abicalçados), 3.6 million pairs were shipped in June. They generated USD US$ 35.6 million, increases of 32.7% in volume and of 49% in values in comparison with the quantities recorded in May. On the other hand, in comparison with the corresponding month in 2019, the decreases amounted to 44.6% in pairs and to 47% in revenues.  During the semester, the exports of 43 million pairs generated USD 330.5 million, decreases both in volume (-24.6%) and in revenues (-31.2%) in relation to the first semester.

Abicalçados' executive president, Haroldo Ferreira, highlights that the numbers already indicate an alleviation of the crisis in the international market, with the gradual resumption of consumption in some major markets. "The environment is already somewhat improving, but our performance is still well below what it usually is," the leader assesses, highlighting that exports will likely decrease by between 22% and 30% in 2020. 

In the first semester, the main destination of Brazilian shoes abroad was the United States, where 4.4 million pairs were exported to for USD 67.26 million, decreases of 31.5% and of 34%, respectively, compared to the same period in 2019. The second destination during the semester was Argentina, where 3.2 million pairs were shipped to, generating USD 32.4 million, decreases of 8% in pairs and 25.5% in revenues in comparison with the same period last year. The third destination was France, where 2.97 million pairs were exported to, the equivalent to USD 25 million, decreases both in volume (-14.4%) and in dollars (-4.2%) compared to the corresponding period last year.

Rio Grande do Sul was the main exporter
Rio Grande do Sul was the state that exported the most shoes in the first half of the year. In the six months, companies in the state shipped 10.5 million pairs, generating USD 146 million, decreases of 26.2% in volume and of 31.4% in revenues in comparison with the first half of 2019. The second-largest exporter during the semester was Ceará, which shipped 14.2 million pairs that generated USD 81.97 million, decreases both in volume (-33.5%) and in revenues (-37%) compared to the same period last year. The third-largest exporter during the period was São Paulo, where 3.25 million pairs were exported from, generating USD 34.6 million, decreases of 14% in pairs and of 30.7% in revenues in relation to the first semester last year.

Imports
The slowdown in the global footwear market – consumption of the product is expected to decrease by more than 22% – has also been reflected in imports, but less prominently than in exports. In the first semester, 12.7 million pairs came into Brazil and USD 158 million were paid for them, decreases of 18.6% and of 12.6%, respectively, compared to the corresponding period in 2019.

The main origins of footwear imports are still Asian countries. The three first countries in the ranking, Vietnam, Indonesia, and China account for over 80% of the total imported during the period. Vietnam was the main origin of shoes imported by Brazil, with 5.3 million pairs and USD 90.36 million, a decrease of 6.4% in volume and an increase of 1.3% compared to the same period last year. The second origin of imports during the semester was Indonesia, where 1.6 million pairs came from; USD 27.2 million were paid for them, decreases both in volume (-30%) and in revenues (-24%) in relation to the same period in 2019. The third origin was China, with 4.7 million pairs and USD 19.6 million, decreases of 22% and of 19.4%, respectively, compared to 2019.

In footwear parts – uppers, soles, heels, insoles, etc. – imports were equivalent to USD 10.6 million, 37.8% less than in the first semester last year. The main origins were China, Paraguay, and Vietnam.