Brazil’s Top Commodities Exports

brazils-top-commodities-rio-de-janeiro

What are Brazil’s top commodities?
Brazil is everywhere in the news right now. What makes Brazil a commodity trading medallist?

Brazil is a big country with huge economic development potential

 

Brazil is the largest South-American county, and a true commodity trading power-hourse.

Currently in the spotlight due to the celebration of the Summer 2016 Olympics in Rio de Janeiro, Brazil is undergoing substantial economic and social development, mainly fueled by commodities, tourism, and foreign investment.

When it comes to Brazil’s top commodities, it is a leading producer of petroleum products, agris and livestock, metals and minerals, and precious stones. It scores 23rd on the world’s top exporters.

Brazil’s Top Commodities Exports

Brazil export portfolio relies heavily on mineral, vegetal, and animal products, as well as metals and precious metals. In particular, it’s Brazil top commodities exports are:

Iron Ore

Brazil exports about $27B worth of Iron Ore, which makes it the world’s second Iron Ore exporter after Australia – which exports range about $60B.

Brazil’s iron industry is lead by the world’s largest iron ore mine: Carajas Mine in Parauapebas, northern Brazil. This Vale operated open-pit mine contains an estimated 7.2B metric tons of iron ore and as well as gold, manganese, copper, and nickel.

About 75% of Brazil iron ore exports end up in Asia – half of Brazil’s iron ore’s exports (46%) end up in China, followed by Japan (11%) and South Korea (7%). About 18% of total exports reach Europe, lead by Germany and Netherlands.

Brazil's top commodities: The world's largest iron ore mine.

The world’s largest iron ore mine in Carajas, Brazil.

Soybeans

The USA is Brazil’s only serious contestant in the world’s soybean export market at about $24B annual exports each. Argentina comes third with an anecdotical $3B.

About 80% of the exports end up in Asia – the majority of Brazil’s soybean’s exports (71%) end up in China, followed by Thailand (2.7%). About 16% of total exports reach Europe, lead by Spain (4%) and Netherlands (4%).

Brazil's top commodities: Brazil is a top exporter of Soybeans.

Brazil is a top exporter of Soybeans.

Crude Oil

Crude oil is the most traded commodity and Brazil’s $16B cannot compete with the likes of Saudi Arabia ($232B), Russia ($155B), or Canada ($87B). In fact, Saudi Arabia’s oil’s export volume equals the totality of Brazilian export. In this sense, although a big player, Brazil is not a top crude oil exporter.

In any case, about 37% of the exports end up in Asia – a fifth of Brazil’s crude oil’s exports (21%) end up in China, followed by India (15%). Another 37% of total exports reach North America, lead by USA (23%).

Brazil's top commodities: One of the offshore oil drills in Guanabara Bay, near Rio de Janeiro

One of the offshore oil drills in Guanabara Bay, near Rio de Janeiro

Raw Sugar

Brazil is the world’s top exporter of raw sugar with about $9.8B, with a wide margin over its closest competitors, Thailand ($3B) and France ($1.3B).

In fact about 52% of the exports end up in Asia – scattered among China – who is the world’s top importer (9%), UAE (8%), Bangladesh (7%), India, etc. Another 30% of total exports reach Africa, lead by Algeria (6%), Nigeria (6%), and Egypt (5%).

Brazil's top commodities: Sugar is widely cultivated in Brazil and exported as raw sugar.

Sugar is widely cultivated in Brazil and exported as raw sugar.

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