Panel SA: Lack of raw materials, expensive clothing and war bring down energy consumption in the textile industry

Among all the sectors monitored by the CCEE (Electric Energy Trading Chamber), the textile industry was the branch of economic activity with the greatest reduction in energy consumption last year.

According to the entity, the sector ended 2022 with an average load of 671 megawatts, a volume almost 4% below 2021.

The CCEE attributes the reduction in consumption to the impacts generated by a lack of raw materials, high transport costs and the Ukrainian War, which put a brake on national production, according to the entity.

In the breakdown by state, Paraíba and Minas Gerais had the greatest variations, with a drop of 20% and 14%, respectively.

Fernando Pimentel, from Abit (Brazilian Textile and Apparel Industry Association), says that after almost two years of strong growth, the sector’s production fell by around 7% (in real data). Companies, according to him, suffered from rising costs and rising prices of products to the final consumer.

“It’s a set of factors. All of this impacted the supply chains and also the price of some important inputs for us, such as cotton, which is an international commodity and had a great price evolution until June last year”, he says.

Joana Cunha with Paulo Ricardo Martins and Diego Felix