China bought half of Brazil’s exported oil — South China Morning Post
From January to September, China purchased half of all crude oil exported by Brazil. Sales of Brazilian oil to the Chinese market rose by 49% to a record $21.8 billion, while trade between the two countries reached $143 billion over nine months, South China Morning Post reports, citing a report by the Brazil-China Business Council.
Brazil’s exports to China grew by 12% to $84.7 billion, while imports of Chinese goods increased by 9.9% to $58.6 billion. Brazil’s trade surplus with China stood at $26.1 billion, or 42% of its total foreign trade surplus.
Oil became the main growth driver
The volume of Brazilian oil shipments to China increased by 27%, while prices rose by 16.8%. China’s share was nearly seven times larger than India’s, which became the second-largest buyer. Oil now accounts for 25.8% of Brazilian exports to China, increasing its share by 6.3 percentage points over the year. Only soybeans have a larger share in exports, at 35.4%.
The council’s report stated that tensions in the Middle East and risks of transportation disruptions through the Strait of Hormuz intensified the search for more stable suppliers and benefited Brazil. According to Kpler, Tehran effectively closed the strait after US and Israeli strikes on Iran began in late February. More than half of China’s seaborne crude oil imports were transported via this route.
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Chinese buyers increased purchases in Brazil even though China’s total crude oil imports fell by 32% in the second quarter, according to Chinese customs data cited by the US Energy Information Administration. Total Brazilian oil exports rose by 28.7% to $43 billion, while sales to India increased by 165%.
Beef lost ground, vehicle imports increased
At the same time, sales of Brazilian beef to China fell by 8.5% to $5.5 billion, while the physical volume of shipments declined by 22%. Brazil exhausted its annual quota of 1.1 million tonnes, after which shipments exceeding the quota have been subject to an additional 55% tariff since the beginning of the month.
Imports from China grew primarily due to electrified vehicles. Purchases of plug-in hybrids increased by 89% to $2.87 billion, while battery electric vehicles rose by 341% to approximately $2.4 billion. Chinese brands accounted for 86% of all electrified vehicles Brazil purchased abroad. China also bought 95% of Brazil’s sorghum exports and 97% of its spodumene exports, a lithium-bearing mineral.
