Indústria regional

Mining sector in MG and ES leverages drop of industrial output in 2019

Section: Economic Statistics | Alerrandre Barros

February 11, 2020 09h00 AM | Last Updated: February 11, 2020 12h37 PM

Vista aérea de uma mineradora
Collapse of the Brumadinho dam (MG) impacted result of the mining and quarrying industry in 2019 - Photo: Josue Marinho

After two consecutive periods of growth, the industrial output fell in seven out of the 15 places surveyed by the IBGE in 2019 and led the sector to close the year at -1.1%. The negative result was mainly leveraged by the downturn in the mining and quarrying sector in Minas Gerais (-25.3%) and Espírito Santo (-21.1%). The data are from the Regional Monthly Industrial Survey, released today (11) by the IBGE.

In Minas Gerais and Espírito Santo, the overall industry retreated 5.6% and 15.7%, respectively. "The negative result in Minas Gerais is due to the smaller output of iron ore, right after the collapse of the Brumadinho dam. The industry in Espírito Santo was influenced by the situation in Minas Gerais and also by the smaller production of crude petroleum oil and the drop in the sector of pulp, a saturated market", said Bernardo Monteiro, an analyst of the survey.

 The other negative results in the year were recorded in the industries of the Northeast Region (-3.1%), Bahia (-2.9%), Mato Grosso (-2.6%), Pernambuco (-2.2%) and Pará (-1.3%). All of them recorded steeper drops than the national average (-1.1%).

Despite the national picture, the best industrial performance in 2019 came from Paraná (5.7%), with an increasing manufacture of cars and trucks. "We had the downturn in Argentina, our major buyer of vehicles, and a smaller number of hires, besides the caution in the consumption by the households and the uncertainty about investments", remarked Monteiro. Last year, the production of meat was another highlight in the state.

Exerting the second largest influence on the places surveyed, the industry in Rio de Janeiro grew 2.3% in 2019, leveraged by the impact of the mining and quarrying sector, due to the increasing production of petroleum and natural gas. Other rises were reported in Amazonas (4%), Goiás (2.9%), Rio Grande do Sul (2.6%), Santa Catarina (2.2%), Ceará (1.6%) and São Paulo (0.2%).

"The small growth in São Paulo reflects the national picture, since this state has the largest industrial park in Brazil. The result came from the sector of machinery and equipment, mainly machinery for cellulose pulp, as well as from the increase in the sector of petroleum products and biofuels, mainly fuel oil and naphtha for petrochemistry and ethyl alcohol", said Bernardo Monteiro.

Twelve places record a drop in the output in December

Between November and December 2019, 12 out of the 15 places surveyed posted negative rates. Rio de Janeiro (-4.3%) and Minas Gerais (-4.1%) registered the sharpest retreats, with the former offsetting part of the gain of 4.6% reported in the months of October and November; and the latter registering the third consecutive negative rate and accruing a loss of 8.7% in this period. In Rio de Janeiro, the result was influenced by the sectors of petroleum products and motor vehicles. In Minas Gerais, the impact is due to iron ore.

Mato Grosso (-4.7%), Bahia (-2.4%), Espírito Santo (-2.3%), Ceará (-1.7%), Pernambuco (-1.7%), Goiás (-1.5%), Rio Grande do Sul (-1.2%), Amazonas (-1.0%) and São Paulo (-0.9%) also recorded more intense declines than the national average (-0.7%), whereas Santa Catarina (-0.7%) completed the whole set of places with negative indexes in December 2019.

Among the three positive results, Paraná (4.8%) and Pará (2.9%) posted the highest advances in December. Paraná offset part of the cumulative loss of 8.2% between October and November, due to the petroleum products. Pará interrupted three consecutive months of decreasing production, a period in which it accrued a retreat of 12.1%. The Northeast Region (0.3%) also reported a positive rate in December last year.

Keywords: Indústria, Produção, Regional, Extrativa, Minas Gerais, Espírito Santo, Barragem, Brumadinho.