product sustainability for export & import in brazil

1. Sainath Balasani
Balreddy Anthangari
Gurdeep Singh
(2nd semester)
EXPORT & IMPORT
Product Suitability For Export & Import
in Brazil
GROUP:UMA1V22

2. • Export Market
• Potential suitability
• Product profile
• Product Unique Characteristics
• Choice of Export Product
• Potentials of Export Product
• Conclusion
Content Layout

3. • Export Market
• Potential suitability
Gurdeep singh
• Product profile
• Product Unique Characteristics
Ballreddy Anthangari
• Choice of Export Product
• Potentials of Export Product
• Conclusion
Sainath Balasani
Content Layout

4. • Brazil is a big producer of oil in South America, but the country still needs to import this product to
supply the national demand.
• No other energy source has the geopolitical importance of oil.
• A country that owns and controls oil reserves and maintains an appropriate structure of refining has
competitive advantages over vital sectors of the domestic economy – such as transportation and
electricity production – and industry, participation in international trade and the direct export of oil
and its derivatives.
• Besides generating fuels such as gasoline, diesel and jet fuel, oil is also the basis of many industrial
products, that can vary from paraffin and naphtha to fabrics and plastics.
• Being the second largest oil producer in South America, Brazil experiences a constant growth in this
sector.
IMPORT MARKET
PRODUCT : CRUDE OIL
MARKET : BRAZIl
BUSINESS CATEGORY : BUSINESS TO BUSINESS & BUSINESS TO COMMERCIAL

5. • The Brazilian legislation establishes mandatory requirements on the import activity depending on which
type of goods is to be imported.
• For some goods, even the general procedures are not enough to make the importation possible. Oil is
one of these products.
• In order to import oil to Brazil the importer will have to acquire a license from the National Agency of
Oil, Gas and Fuel– known as ANP.
• The license will permit the entrance and commercialization of the product in the country.
PRODUCT SUITABILITY

6. • The country produces more crude oil than its domestic demand – currently 1.9 million barrels per
day.
• However, since 70% of the production is heavier crude oil and the Brazilian refining structure is not
entirely suitable for processing this type of oil it is still necessary to import light oil.
• The importation of light oil is fundamental to increase the production of light and medium
derivatives, such as gas kitchen, gasoline, naphtha and diesel. Thus, the excess of domestic heavy oil
is exported.
• In the last few years the Brazilian balance of trade has suffered deficits in this sector.
Why does Brazil Import Oil with so many National Reservoirs?

7. • Crude oil characterization has long been an area of concern in refining.
• However, the need to identify the chemical nature of crude has gained importance in upstream operations.
• Crude oil commonly known as petroleum.
• It is a liquid found with in earth.
• Composition: Hydrocarbons (50-97%)
Organic compounds
(N2,O2,S) ( 6-10%)
Small amounts of metal
(Cu,Ni,Vn,Fe) (<1%)
Ref: http://thebrazilbusiness.com
CHARACTERISTIC OF PRODUCT

8. • Oil exports from Brazil rose more than 140% in July of 2016, while imports dropped by half.
• The reason for this decrease in imports is because even though the Brazilian production of the
commodity is high it is widely used domestically to keep up with the ever increasing demands.
• Oil imports rose to 3.124 billion USD in July of 2013, compared to 1.233 billion USD in July of 2012.
Exports shrank to 692.2 million USD in July of 2013, compared with 1.348 billion in July of 2012,
according to data released by the Secretariat of Foreign Trade (Secex).
• Higher imports and lower exports of oil have affected not only the accounts of the country – the
trade deficit for the year is 5 billion USD – but also the accounts of Petro bras.
EXPORT TO BRAZIL

9. • The importation of oil and fuel total to 25.8 billion
USD, up from 21.68 billion USD in the same period in
2012, when Brazil was already importing high
volumes.
Ref: According to data of www.oced.org
Imports of crude oil year wise with Table
Year
Average Price of the Imported
Barrel
(USD/BOE FOE)
2008 109.52
2009 64.32
2010 82.62
2011 117.42
2012 118.72
2013 114.16

10. POTENTIALITY OF EXPORT
Crude oil is processed and refined into more useful products such as petroleum naphtha, gasoline, diesel
fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas.Which are used in
- Automobiles like cars, heavy vehicles, bikes, trains, airplanes and many used in industries ,Home appliances
and residual fuel oil, used to power large ocean-going ships) in favor of middle distillates (jet fuel, kerosene, home
heating oil and diesel fuel) and lighter, higher value products (liquid petroleum gases (LPG), naphtha, and gasoline.
• 70% of Diesel, 99.6 % of Petrol consumed by Transport Sector
• 13.15% of Diesel Consumed by private cars and UVs, 8.94% by commercial cars & UVs and 6.39% by 3-wheelers;
Trucks account for 28.25%, Buses 9.55% and Railways about 3.24%.
• Agriculture Sector uses 13% of Diesel; industry consumes 9.02% including industry gensets with 4.06% and Mobile
Towers 1.54%
• Two-wheelers top Petrol consumption with 61.42% followed by cars with 34.33% and3-wheelers with 2.34% .

11. Business Area
Exploration and Production -crude oil, NGL and natural gas exploration, development and
production in Brazil.
Distribution -distribution of oil products, ethanol, biodiesel and natural gas
gas to wholesalers and through the Petrobras Distribuitors S.A.
retail network in Brazil.
Gas & Power -transportation and trading of natural gas and LNG, and
generation and trading of electric power, and the fertilizer
business.
International -exploration and production of oil and gas, refining,
transportation and marketing, distribution and gas and power
operations outside of Brazil.
Refining, Transportation & Marketing - refining, logistics, transportation, trading operations, oil
products and crude oil exports and imports and petrochemical
investments in Brazil.
Biofuels -production of biodiesel and its co-products and ethanol-
related activities such as equity investments, production and
trading of ethanol, sugar and the excess electricity generated
from sugarcane bagasse.
Cont..

12. • A greater cooperation between India and Brazil, two of the world´s largest
democracies, is in order and will certainly benefit both countries, since
their economies can share enormous synergies and supplement each
other, particularly in agriculture, where Brazil, a major exporter, can
become a reliable partner for India.
• Great partnerships only happen after many successful negotiations take
place. It is time to negotiate and secure greater cooperation.
• The future looks bright for Brazil and India.
Conclusion

13. Appendices
Ref:http://www.tradingeconomics.com/brazil/imports

14. Year India export India import Balance of
trade-India
Total Trade Growth %
2008 3564 1102 2461 4666 49.23
2009 2191 3415 -1224 5605 20.12
2010 4242 3492 750 7734 37.97
2011 6081 3201 2880 9282 20.00
2012 5043 5577 -544 10620 14.41
2013 6357 3130 3227 9487 -10.67
2014 2260 1141 1119 3401 9.89
2015(Jan-Apr) 3260 1200 2060 4460
Ref:http://en.mercopress.com
www.Oced.org

15. Ref:According to oced.org,oce.org and
worldbank.org