Released July 28, 2021 | CORDOBA, ARGENTINA
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Researched by Industrial Info Resources (Sugar Land, Texas)--The persistence of the COVID-19 pandemic is creating several barriers and opportunities for Brazilian agribusiness. Agricultural machine manufacturers perceive a strong increase in production costs, resulting mainly from the increase of commodity values for the sector.
According to the Brazilian Association of Machinery and Equipment Industry (Abimaq) the price of steel has risen 90% in the international market since 2019, and it seems that this trend will continue at least until the end of 2021.
Brazilian steel suppliers like Companhia Siderurgica Nacional (CSN), Gerdau and Usiminas have increased their prices by 35% from the beginning of 2021.
Market trends show difficulties for the sector in obtaining raw materials, which has also seen a substantial increase in logistic costs. The increase in international steel prices, along with the exchange rate between the Brazilian real and the U.S. dollar, obliges agricultural machinery manufacturers to pass on these adjustments to their customers.
Steel is not the only commodity where price increases have occurred. Agricultural machinery manufacturing requires a series of other petroleum-derived components such as plastic and rubber tires.
Half of the parts that go into agricultural machinery in Brazil are domestically sourced, and half are imported, creating supply-chain issues due to the foreign exchange imbalance.
However, demand for agricultural machinery, mainly harvesters, practically doubled from the beginning of 2020 to 2021 in Brazil.
Brazil has more than 400 agricultural machinery manufacturing companies, which are focusing on guaranteeing strategic resources (mainly steel) to maintain their production, and are investing in the optimization of their industrial plants.
Industrial Info is tracking 35 agricultural machinery sector capital projects in Brazil, worth $137.06 million. Subscribers to Industrial Info's Global Market intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
According to the Brazilian Association of Machinery and Equipment Industry (Abimaq) the price of steel has risen 90% in the international market since 2019, and it seems that this trend will continue at least until the end of 2021.
Brazilian steel suppliers like Companhia Siderurgica Nacional (CSN), Gerdau and Usiminas have increased their prices by 35% from the beginning of 2021.
Market trends show difficulties for the sector in obtaining raw materials, which has also seen a substantial increase in logistic costs. The increase in international steel prices, along with the exchange rate between the Brazilian real and the U.S. dollar, obliges agricultural machinery manufacturers to pass on these adjustments to their customers.
Steel is not the only commodity where price increases have occurred. Agricultural machinery manufacturing requires a series of other petroleum-derived components such as plastic and rubber tires.
Half of the parts that go into agricultural machinery in Brazil are domestically sourced, and half are imported, creating supply-chain issues due to the foreign exchange imbalance.
However, demand for agricultural machinery, mainly harvesters, practically doubled from the beginning of 2020 to 2021 in Brazil.
Brazil has more than 400 agricultural machinery manufacturing companies, which are focusing on guaranteeing strategic resources (mainly steel) to maintain their production, and are investing in the optimization of their industrial plants.
Industrial Info is tracking 35 agricultural machinery sector capital projects in Brazil, worth $137.06 million. Subscribers to Industrial Info's Global Market intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
