The low demand of China It has been a global headache in many different markets: being the second largest economy in the world, its trade significantly boosts the exchange of goods and services in a large number of countries, including, Uruguay. In this sense, the reduction in demand projections for soy expected by the Asian giant is also bad news for the country.
He United States Department of Agriculture (USDA) adjusted downwards previous projections for imports of soy of China, and estimated that, although it will remain stable in the 2024/2025 period, this year it will buy 103 million tons, instead of the expected 105 million.
For next year, meanwhile, the adjustment was from 109 to 103 million tonnes. This means that the record will remain at 104.5 million tonnes in 2022/23.
Also, the Domestic consumption was reduced by the same proportion, 6 million tonnes less than in the previous USDA forecast, to stand at 120.8 MT.
What does this mean for Uruguay?
Confirmation of a lower demand for primary products It is always bad news for the country, even more so if it comes from the main market for the placement of this type of goods. Uruguay.
In this regard, the export market is already suffering the consequences of the slowdown of the Chinese economy, mainly with regard to the placement of meat and derivatives. A scourge that is deepened by the fall in commodity priceswhich further harms local trade.
Although for several months now Brazil dethroned her at the top of the list, China It still remains a key player in the Uruguayan economy, Therefore, the future of the Asian giant is closely observed from the territory.
Therefore, the fact that during June and despite the fact that the exports from that country grew at their fastest pace in fifteen months; imports contracted unexpectedly, once again due to the weakened domestic demand.
On the conflicting trade data, moreover, analysts warn that it remains unclear whether the strong export sales of recent months can be sustained, given that major trading partners are becoming more protective and raising prices. duty to Chinese products.
Thus, the alarms go off once again after the imports China’s output is expected to hit a four-month low in June, contracting by 2.3%, compared with an expected 2.8% rise and a 1.8% increase in the previous month, highlighting the fragility of domestic consumption.
Source: Ambito
