Assintecal (an association that represents the Brazilian shoe components industry, such as soles and insoles) says that the war in Ukraine could threaten the supply of specific inputs from Russia.
One of the concerns, according to the entity, is chromium, which makes up the chemical used to treat leather.
“The industries still have a stock, so the impact should not be immediate. But, for sure, it is an effect that will arise soon ahead if the situation does not normalize. And, even after the conflict, I do not imagine that the conditions will be removed immediately”, says Luiz Ribas Júnior, manager of the entity.
Petroleum-derived inputs, such as polyurethane polymers, used in synthetic soles and laminates, should feel the effects of the price increase within two or three months, says Ribas.
The entity foresees a pass-through in the prices of shoes.
On the other hand, the sector expects to gain prominence in exports in Latin America in the coming months, driven by the new wave of measures established by China (the main Brazilian competitor) to contain the advance of Covid.
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In the first two months of the year, the national industry exported US$ 71.3 million (R$ 35.9 million) in products, 37% more than in the first two months of last year, according to Assintecal. In comparison with the same period in 2019, before the pandemic, the advance is already 13%.
Joana Wedge with Andressa Motter and Ana Paula Branco
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