July 2023 Sees Brazilian Soap Exports Plummet to $11M

Brazil Soap Exports

After two months of growth, overseas shipments of soap decreased by -22.1% to 3.7K tons in July 2023. In general, total exports indicated a mild increase from July 2022 to July 2023: its volume increased at an average monthly rate of +1.5% over the last twelve months. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on July 2023 figures, exports decreased by -22.1% against June 2023 indices. The most prominent rate of growth was recorded in March 2023 with an increase of 63% m-o-m. As a result, the exports reached the peak of 4.9K tons. From April 2023 to July 2023, the growth of the exports remained at a lower figure.

In value terms, soap exports contracted markedly to $11M (IndexBox estimates) in July 2023. Overall, total exports indicated a tangible expansion from July 2022 to July 2023: its value increased at an average monthly rate of +2.1% over the last twelve months. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on July 2023 figures, exports decreased by -18.6% against June 2023 indices. The growth pace was the most rapid in August 2022 when exports increased by 66% m-o-m. As a result, the exports reached the peak of $15M. From September 2022 to July 2023, the growth of the exports remained at a somewhat lower figure.

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COUNTRY	Export Value of Soap in Brazil (million USD)
	Jul 2022	Aug 2022	Sep 2022	Oct 2022	Nov 2022	Dec 2022	Jan 2023	Feb 2023	Mar 2023	Apr 2023	May 2023	Jun 2023	Jul 2023
Argentina	3.3	4.6	2.6	2.3	2.4	2.7	2.6	2.3	4.4	4.5	4.0	4.7	3.3
Peru	0.9	1.4	1.5	1.0	1.3	0.8	0.9	1.1	1.0	1.7	1.4	1.1	1.2
Paraguay	0.4	1.4	0.8	0.6	0.4	1.2	1.2	0.5	1.0	0.9	1.1	1.3	1.1
Chile	0.9	1.1	0.9	1.2	0.8	0.8	0.7	1.0	1.4	1.1	1.0	1.1	0.8
Venezuela	0.4	0.3	0.7	0.8	0.9	0.2	0.4	0.5	1.0	0.5	0.9	0.9	0.6
Uruguay	0.6	1.1	0.4	1.0	0.5	0.7	0.8	1.0	1.1	0.8	0.9	1.2	0.5
United States	< 0.1	< 0.1	< 0.1	2.1	2.1	0.9	1.4	< 0.1	< 0.1	< 0.1	0.1	< 0.1	< 0.1
Others	2.2	4.7	3.5	2.9	2.6	3.4	2.6	2.8	4.4	2.7	4.0	3.4	3.9
Total	8.8	14.6	10.5	11.8	11.0	10.7	10.6	9.2	14.4	12.3	13.5	13.9	11.3

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Exports by Country

Argentina (1.1K tons) was the main destination for soap exports from Brazil, accounting for a 31% share of total exports. Moreover, soap exports to Argentina exceeded the volume sent to the second major destination, Paraguay (545 tons), twofold. The third position in this ranking was taken by Peru (318 tons), with an 8.7% share.

From July 2022 to July 2023, the average monthly growth rate of volume to Argentina was relatively modest. Exports to the other major destinations recorded the following average monthly rates of exports growth: Paraguay (+12.0% per month) and Peru (+0.8% per month).

In value terms, Argentina ($3.3M) remains the key foreign market for soap exports from Brazil, comprising 29% of total exports. The second position in the ranking was held by Peru ($1.2M), with a 10% share of total exports. It was followed by Paraguay, with a 9.8% share.

From July 2022 to July 2023, the average monthly rate of growth in terms of value to Argentina was relatively modest. Exports to the other major destinations recorded the following average monthly rates of exports growth: Peru (+2.4% per month) and Paraguay (+8.4% per month).

Exports by Type

Soap and organic surface-active products in bars for toilet use (2.5K tons) was the largest type of soap exported from Brazil, accounting for a 67% share of total exports. Moreover, soap and organic surface-active products in bars for toilet use exceeded the volume of the second product type, organic surface-active products for washing the skin (615 tons), fourfold. Soap in different forms (441 tons) ranked third in terms of total exports with a 12% share.

From July 2022 to July 2023, the average monthly growth rate of the volume of export of soap and organic surface-active products in bars for toilet use was relatively modest. With regard to the other exported products, the following average monthly rates of growth were recorded: organic surface-active products for washing the skin (+3.6% per month) and soap in different forms (+3.2% per month).

In value terms, soap and organic surface-active products in bars for toilet use ($7.8M) remains the largest type of soap exported from Brazil, comprising 69% of total exports. The second position in the ranking was held by organic surface-active products for washing the skin ($2.3M), with a 20% share of total exports. It was followed by soap in different forms, with a 9% share.

From July 2022 to July 2023, the average monthly rate of growth in terms of the export volume of soap and organic surface-active products in bars for toilet use stood at +1.9%. With regard to the other exported products, the following average monthly rates of growth were recorded: organic surface-active products for washing the skin (+4.1% per month) and soap in different forms (+0.6% per month).

Export Prices by Country

In July 2023, the soap price stood at $3,079 per ton (FOB, Brazil), surging by 4.5% against the previous month. Overall, the export price recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in August 2022 when the average export price increased by 7.8% m-o-m. The export price peaked at $3,409 per ton in December 2022; however, from January 2023 to July 2023, the export prices failed to regain momentum.

There were significant differences in the average prices for the major external markets. In July 2023, the country with the highest price was the United States ($5,674 per ton), while the average price for exports to Uruguay ($1,904 per ton) was amongst the lowest.

From July 2022 to July 2023, the most notable rate of growth in terms of prices was recorded for supplies to Venezuela (+3.5%), while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform