Brazil and China trade hits record 143 billion dollars on surging oil flows

Bilateral trade between Brazil and China hit an unprecedented $143 billion during the initial nine months of the year, propelled by heavy Chinese purchases of Brazilian petroleum following conflict-related disruptions to Middle Eastern shipping routes.

A quarterly report released by the Brazil-China Business Council, based on official government figures, showed that Brazilian deliveries to China climbed by 12 per cent to $84.7 billion from January through September. At the same time, Brazilian purchases of Chinese goods expanded by 9.9 per cent to reach $58.6 billion. The trade dynamic left Brazil with a positive trade balance of $26.1 billion with Beijing, representing 42 per cent of Brazil's total global trade surplus across the period.

Crude petroleum emerged as the primary catalyst behind the expansion in trade. Brazilian petroleum revenue from Chinese importers jumped 49 per cent to a historic high of $21.8 billion. That surge was driven by both volume and cost factors, with shipped quantities climbing 27 per cent while prices advanced 16.8 per cent.

China purchased half of all petroleum exported by Brazil over the nine-month stretch. That volume was nearly seven times larger than the amount delivered to India, which stood as the second-biggest destination for Brazilian crude.

The sharp uptick in Chinese demand followed turmoil in the Persian Gulf, where warfare involving Iran and the closure of the Strait of Hormuz severely hindered tanker traffic and restricted energy supplies from regional producers. Crude oil has come to represent a quarter of all Brazilian goods sent to Chinese buyers, although shipment growth subsequently eased once maritime transit through the Gulf resumed.