Think Plastic Brazil: quarterly market results

With unique actions, use of new technologies, and proximity to participants, Think Plastic Brazil is celebrating good results from January to March 2021, despite the difficulties presented by the COVID-19 pandemic. In March 2021, the program reached the milestone of 174 participating companies (a 39.2% increase), representing 24.7% of exports in the Brazilian processed plastics sector (20.20% in the same period of 2020, an increase of 4.5 p.p.). Among the 174 member companies, 124 had a ? 42.53% increase in exports.
Both the FOB value exported (? 7.89%) and the exported weight (? 2.8%) increased in the period. Nevertheless, it is important to note two indicators: 1) the average exchange rate between these two periods (January-March 2021 – R$4.66 and 2021 – R$5.57), which represents an appreciation of approximately ? 19.60 %, and 2) the increase in the prices of raw materials and inputs.
When dividing the total value exported in U.S. dollars by the weight, it is observed that there was a ? 4.95% in increase price per kilogram (kg). When converting the total value exported to Brazilian reais, using the average exchange rate for the period, this increase represents ? 25.51%. This is a satisfactory result to minimize the impact caused by both the pandemic and the increase in raw material prices.
Another indicator that stood out is the number of companies among the 124 exporters that opened new markets to which they had never exported before, which showed a ? 142.86% increase. This result points to the hypothesis that the supply chain has changed and that new opportunities in other countries are accessible. Similarly, two other indicators are observed, increases of 1) 39.33% in the number of new products exported and 2) ? 40.38% in the number of new export destinations in the period from January to March 2021 when compared to 2020.
The top five export destinations from January to March 2021 were: 1. Argentina; 2. Chile; 3. the Netherlands; 4. United States; and 5. Paraguay.