Category: Industry

Information about Brazil’s economic sectors

Vale preparing for potential fuel leak from damaged ore carrier

Brazilian mining company Vale SA has begun preparations for a potential fuel leak from the damaged iron ore carrier MV Stellar Banner, which is stranded off the Brazilian northern coast with 4,000 tones of fuel aboard. Vale said in a statement it requested Petrobras appropriate ships to deal with the possible leak and has arranged for the dispatch of oceanic buoys to the area. The MV Stellar Banner, owned by South Korea’s Polaris, had only started its trip to China carrying iron ore when it was stranded.

Brazil to allow for automatic approval of new agrochemicals

Brazil’s Agriculture Ministry will allow for agrochemicals awaiting regulatory approval to receive licenses automatically, potentially allowing new pesticides to reach market faster, according to new rules published in the government gazette with effect on April 1. If the ministry fails to review applications for new chemicals to be licensed within 60 days, the products will automatically be approved, although they will still need to receive separate approvals by the Health and Environment Ministries before going on the market.

Bovespa tumbles 7% as coronavirus fear grips stocks, oil markets

Stocks and oil prices resumed their fall on Wednesday due to increasing concern over coronavirus spread. On Wall Street, the emerging market stocks lost 1.25%. Brazil’s Bovespa index tumbled 7%, catching up with the selloff after a long carnival holiday, and the same day a first case of coronavirus in the country was confirmed. Argentina’s S&P Merval fell 5.65%. U.S. crude fell 2.38% to $48.71 per barrel and Brent was last at $53.41, down 2.8% on the day.

Carnaval 2020 expected to inject $2 billion into Rio’s economy

The extended holiday is expected to generate R$8 billion ($2bn) billion in tourism-related activities this year, estimates the National Confederation of Goods, Services, and Tourism (CNC). If confirmed, the turnover represents a one percent real increase over the same period last year and the highest figure since 2015. According to the CNC, “the gradual rebound of economic activity”, low inflation and a stronger dollar against Brazilian real should favour a greater inflow of tourists.

Banks distribute $12 billion in dividends to shareholders in 2019

The volume of dividends that large banks in Brazil paid out to their shareholders in 2019, with the exception of Itaú Unibanco, was R $ 52 billion ($ 12 billion), almost 26% more than in 2018. Itaú Unibanco distributed 66.2 % of recurring net revenues for 2019, compared to 89.2% the previous year. The decrease in the proportion of dividends was reflected directly in the pocket of the shareholders of Itaúsa, the holding company that controls the bank.

Soybean crop gains pace driven by Mato Grosso, 30.4% of 37mn ha

The soybean crop now reaches 30.4% of the area of ​​37 million hectares, according to a survey conducted by the consultant Safras & Mercado. Only Santa Catarina and Rio Grande do Sul have not yet begun, says the survey. The most advanced state is still Mato Grosso (74%). If compared with the average rate of 28% of the period, the current national crop is advanced, but behind 40% in the same period last year. The progress in relation to the week ending February 14 was medium, when it was 22%.

Raízen seeks partnership with India in ethanol production

Raízen, one of the biggest ethanol producer in Brazil, is looking at partnerships with Indian firms for second-generation ethanol, produced from bagasse and sugarcane leaves, President and CEO Luis Henrique Gulmaraes said. In the interim Brazil could also export ethanol to India to quicken its 10% ethanol-blend programme. Raízen, a 50-50 joint-venture between Cosan and Royal Dutch Shell , is the third largest Brazilian energy company by revenue and the fifth largest in the country.