Mexico tops the list as the largest importer of paints and varnishes in Latin America. Brazil's steady and Peru's remarkable growth also stand out within this analysis.
by Duván Chaverra Agudelo
The year ends, it is the time when many of the companies belonging to our sector begin to meet to make their balance sheets and to plan the production, market and marketing strategies of their products or services.
At INPRA LATINA we are also making different balances. As you can see in our two previous editions, we have given priority to market research based on some of the most important products in our sector. First we did a study on epoxy resins, then we analyzed the current situation of TiO2 and in this last edition of 2013, we want to present the results, to date, on the way in which the market for paints and varnishes (including enamels and lacquers) has behaved in the main countries of Latin America.
As usual, we rely on the data analysis portal Datamyne.com, which refers to imports from the market in question until September 2013 and the most prominent companies.
Statistics support that Mexico is indisputably the country that imports this class of products the most in Latin America, surpassing the rest of the nations in the region by a wide margin. So far in 2013 (data up to August 31), Mexicans have imported a total of 10,495,446 kilograms of paints and varnishes for an equivalent value in FOB (Free on Board) of US$57,191,323.
Compared to the same period in 2012, the value of imports has increased by 1.66% (US$56,257,394 in 2012), while the amount fell by 13%, since the previous year a total of 12,095,771 kilograms were imported.
The United States is the country that exports the most to Mexico, with 85% of the total amount. Spain, Italy and Canada are other countries that contribute the most in this regard.
Brazil is another of the nations that invests the most in the import of paints and varnishes. During this 2013, the South American giant has invested until September 30 of this year a total of US $ 11,359,257 for 2,311,602 liquid kilograms of these products. Although the amount has increased compared to 2012 (2,119,529), the value decreased by 10% (US$12,365,632 registered the previous year).
By value of imports, the United States, with 17% of the total, Portugal (13%), Germany (12%), France (12%) and Colombia (10%), are the main suppliers of Brazilians in the matter in question.
The rest of the actors have a very minimal participation if compared to the two powers mentioned above. Argentina registers good figures, however, in this case it must be made the proviso that the data provided by Datamyne are not comparable, since the list of imports includes quantities in liters, net kilograms and units, so the value of these is much higher.
To be more specific, Argentina as of September 2013 has imported a total amount of 2,420,919, which is equivalent to US$17,792,415. However, if we compare with the immediately previous year, the values have fallen, since in 2012 it imported 2,735,304 in total quantity, that is, 11% more, for a value of US $ 20,936,418, which means that the value fell by 15%.
Brazil is the most important trading partner for Argentines, since 41% of the quantities in liters, 7% in units and 9% in net kilograms depart from that country. Other countries with active participation for the service of Argentina are France, Germany and Spain.
Chile has slightly increased its imports of the product we are analyzing. The southerners have received a total of 1,524,805 kilograms equivalent to US$7,530,239. Compared to the data of the previous year, Chile increased the number of kilograms by 63,435, that is, 4% more, which has also had an impact on its value, increasing it by 1,060,370, which is equivalent to 16%.
Chileans receive 48% of the merchandise from Brazil. 12% are traded from the United States and Spain, respectively, and 10% from Argentina.
Colombia closely follows Chileans in this ranking. Colombians imported a total of 1,238,898 kilograms for US$6,597,481 until September 30, 2013. In total, Colombia has imported 19% more than the previous year in terms of quantity and has paid 15% for the shipment of paints and varnishes.
Mexico is the main ally of Colombians for the shipment of this class of products. Mexicans account for 47% of total exports.
Finally, in Peru, although their numbers are not as high as in the countries mentioned above, they have had a growth of 91%, going from 319,601 kilograms imported in 2012 to 613,166 so far this year. This, for obvious reasons, also affects the value of imports, which presented figures in 2012 from US$1,957,988 to US$3,523,968 until September 30, 2013, that is, they increased by 80%.
The United States with 26% of the total business, Brazil (15%) and China (15%) are the first three countries that send the most paints and varnishes to the Peruvian country.
In conclusion, and as referred to in the support tables, many of the important companies in our sector continue to rely on imports to supply their companies located in any of the countries highlighted in this note. There is no doubt that Mexico is a large importer and that in this segment Peru is consistent with the positive news of its market.
