Panorama and first semester of 2020
In 2020, the Port of Paranaguá celebrated its 85th anniversary as one of the main Ports in Brazil in grains and meal handling. Between the main exporting Brazilian Ports, Paranaguá figures as the third largest soybean grain exporter, behind Santos and Rio Grande, and as the second largest corn and soybean meal exporter, only behind Santos. [1]
Of the total exported through the Port of Paranaguá in 2019, 89% of the soybean grain went to China and the majority of soybean meal went to Netherlands (25.69%), France (17.67%) and South Korea (15.28%). On the other hand, when it comes to corn, the main destinations were Iran (42%), Japan (29.7%) and South Korea (7.1%).
This year, despite the setbacks imposed by the Coronavirus pandemic, the Port of Paranaguá is beating its own records in a monthly basis in regards to soybean export. March/2020 presented the largest monthly movement ever recorded in Paranaguá’s Export Corridor, which is a set of terminals interconnected by conveyor belts to six ship-loading equipment operating in three berths. 2.4 million tons of soybeans, both grain and meal, were shipped through the Port of Paranaguá. The volume is 51% higher than that handled in the same month of 2019, exceeding by more than 180 thousand tons the previous record of 2.2 million tons reached in June/2019. Confirming the good performance, both April and May also presented results exceeding the mark of 2 million tons exported. [2] [3]
In relation to fertilizers, in 2020 the Ports of Paraná have already handled about 5.5 million tons of the product, representing a growth of 5% over the same period of 2019. The main varieties that are imported through the Ports of Paranaguá and Antonina are potassium chloride (MOP), urea, MAP (monoammonium phosphate), ammonium sulfate and NPK complexes. As per analysis of the Ministry of Economy, the Port of Paranaguá is the main importer of fertilizers among all Brazilian Ports. Last year, nearly 9 million tons were imported through the Ports of Paraná, which represents about 30% of the total imported by Brazil. [4]
To a lesser extent, but in equally large proportions, cotton export has also grew in the first semester of 2020. Until June/2020, almost 11.8 thousand tons of the product were shipped in containers through the Ports of Paraná. In the same period of 2019, only 331 tons of the product left the country through Paraná, representing an increase of 3098%. According to the Ministry of Economy, the Port of Paranaguá was the second Port in Brazil in terms of volume of cotton exported. The main buyers of cotton exported through Paranaguá are Vietnam, China, Pakistan, Indonesia and Turkey. [5]
The following table shows the total exported by the Ports of Paraná, both Paranaguá and Antonina, until July/2020 and also the comparation with the same period of 2019. It is important to remark that the bellow listed volumes represent 65% of the Ports’ movement, as the other 35% concerns to imports. [6]
Perspective for the next semester
As the corn harvest progresses in the state Paraná, the Port Administration is sure that corn will be more and more present in the Paraná Ports’ line-up. Until now, with regard to corn, it is estimated that only 26% (or 2.3 million hectares) of the planted area was harvested. The harvesting progress coupled with the recent appreciation of the Dollar against the Real leaves room for an export increase in the next months.
The current projections of demand for food and the good pace of the Brazilian harvest are also the reason for the Port Administration to estimate that soybean exports will continue in the coming months. For the next few months, 6.43 million tons of soybeans, already sold, are expected.
In the matter of fertilizers, it is estimated that imports correspond to at least 80% of the total amount of product used by Brazilian producers. As per experts opinion, the peak deliveries should occur between August and November, as we are currently experiencing the off-season. From January to April the volume of imports corresponds to only one third of what will be purchased in the year, therefore, the import movement is expected to grow from the second semester of 2020. [7]
The Coronavirus pandemic has reduced the volume of trade between countries. However, as a major food and energy supplier, Brazil has managed to maintain the pace of exports. Until now, trade has been stimulated by strong Chinese demand, mainly due to health problems in a few producing countries, to the need to guarantee food security and to the devaluation of the Real against the dollar, which increased the competitiveness of Brazilian products.
João Eduardo Kuhlmann
Kuhlmann Surveyors & Consultants
19th August, 2020.
[1] Port of Paranaguá sets another record on grains exports (2019): http://www.portosdoparana.pr.gov.br/english/Noticia/Paranagua-Port-sets-another-record-grain-exports [2] Port of Paranaguá doubles the volume of soybean exports: http://www.aen.pr.gov.br/modules/noticias/article.php?storyid=107314&tit=Porto-de-Paranagua-dobra-embarques-de-soja [3] March presents the largest monthly movement ever recorded in Paranaguá’s Export Corridor: http://www.aen.pr.gov.br/modules/noticias/article.php?storyid=106436&tit=Porto-de-Paranagua-tem-exportacao-recorde-de-graos [4]Ports of Paraná present growth of 5% in fertilizers handling: http://www.portosdoparana.pr.gov.br/Noticia/Parana-e-referencia-na-movimentacao-de-fertilizantes [5] Cotton export increases 3098% in the first semester of 2020: http://www.aen.pr.gov.br/modules/noticias/article.php?storyid=107182&tit=Exportacao-de-algodao-cresce-3.098-nos-portos-do-Parana [6] Paraná Ports statistics until July/2020: http://www.portosdoparana.pr.gov.br/sites/portos/arquivos_restritos/files/documento/2020-08/julho.pdf [7] Fertilizers follow the pace of the agribusiness and imports will grow: https://anba.com.br/fertilizantes-acompanham-avanco-do-agro-e-tem-mais-demanda/
Comments