Sainath BalasaniBalreddy Anthangari

Gurdeep Singh(2nd semester)

EXPORT & IMPORTProduct Suitability For Export & Import

in BrazilGROUP:UMA1V22

• Export Market• Potential suitability• Product profile• Product Unique Characteristics• Choice of Export Product• Potentials of Export Product• Conclusion

Content Layout

• 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

• 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 MARKETPRODUCT : CRUDE OIL

MARKET : BRAZIl

BUSINESS CATEGORY : BUSINESS TO BUSINESS & BUSINESS TO COMMERCIAL

• 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

• 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?

• 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

• 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

• 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

YearAverage 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

POTENTIALITY OF EXPORTCrude 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% .

Business AreaExploration and Production -crude oil, NGL and natural gas exploration,

development and production in Brazil.Distribution -distribution of oil products, ethanol, biodiesel

and natural 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..

• 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

Appendices

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

Year India export India import Balance of trade-India

Total Trade Growth %

2008 3564 1102 2461 4666 49.232009 2191 3415 -1224 5605 20.122010 4242 3492 750 7734 37.972011 6081 3201 2880 9282 20.002012 5043 5577 -544 10620 14.412013 6357 3130 3227 9487 -10.672014 2260 1141 1119 3401 9.892015(Jan-Apr)

3260 1200 2060 4460Ref:http://en.mercopress.com www.Oced.org

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