region
Components and raw materials are in short supply, which can shut down production lines
By Ana Carolina Leal
Apr 29, 2022 @ 7:27am
Link to article: https://liberal.com.br/cidades/regiao/lockdownnachinapodegerarcrisededesabastecimentonasindustriasdaregiao1756392/
The new lockdown enacted by the Chinese government to curb the progress of Covid19 cases, combined with a default operation by the Federal Tax Agency, may lead to new supply shortages and cost increases in the RPT (Region of Textile Pole).
China is Brazil’s largest trading partner. In the region it is one of the main sources of imports. For example, in Hortolândia, 52% of the products or services are from Chinese land. In Nova Odessa the proportion is 19%, followed by Americana with 18%, Santa Bárbara d’Oeste with 10% and Sumaré with 9.9%.
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Leandro Zanini, Americana’s Ciesp (Sao Paulo State Industrial Center) titular director, says the current import scenario worries industries due to the shutdown in production in Asia and the standard work of Federal Treasury inspectors, as the movement of loads takes longer, more storage costs and also causes bottleneck risks.
According to him, many components and raw materials have low stock levels, which threatens the continuity of production lines to stop, causing delays in shipments and lower shipments.
“These variables can affect price adjustments or a decrease in the supply of these products, which depend on imported inputs for the consumer market,” he says.
Transport costs and ship frequency are also issues pointed out by associations Photo: Ricardo Botelho / MINFRA
According to the President of Abit (Brazilian Association of Textile and Garment Industry), Fernando Valente Pimentel, there is currently no shortage of products from China, at least by and large.
“What we have is cost pressure from rising raw material costs related to transportation issues, which is causing disruptions not only from increasing freight costs but also from ship frequency,” he explains.
Pimentel adds that Abit is not aware of any production stoppages in Brazil due to a lack of Chinese supplies, not least because it says the country has alternatives and ways to meet a number of domestic industry needs.
“But the continuation of this situation could undoubtedly jeopardize the supply of some raw materials in the areas of dyes and synthetic fibers,” he concludes.
What is happening in China Dozens of Chinese cities are under lockdown to prevent the spread of the coronavirus. So far it is not a new wave or variant of the disease. What is happening is that the country is adopting a “Covid Zero” strategy and, as it has seen an increase in cases in recent weeks, has decided to impose restrictions.