(ANSA) - The war of words between Brazilian President Jair
Bolsonaro and Rodrigo Maia, the President of the Chamber of
Deputies, has caused alarm among traders due to the possible
repercussions the tension could have for the pension reform.
But the pipes sector remains "full of hope" for the rest of
the year.
Carlos Eduardo Baptista, the president of the Brazilian
Association for the metal pipes and accessories industry
(Abitam), admitted in an interview with ANSA though that he did
not expect this "clash" between the executive and the
legislature and that enthusiasm has been "dampened a little".
On the other hand, he does not use the word "disappointing"
to describe the economic performance of early 2019.
"It (the tussle between Bolsonaro and Maia) surprised us all,
but we are still hopeful," Baptista said.
The Abitam president stressed that approval of the pension
reform is the starting point for a reorganization of the
Brazilian economy and the attraction of investment.
The holdup of the recent days, however, showed that the
project could take longer than expected to be finally approved.
"Everything is still suspended," argued Baptista, stressing
that he would be satisfied with a 1% growth rate for the sector.
Some projects are already moving forward, such as the
concessions the government decided on at the start of the year
and initiatives regarding the crude presale deposits, but the
effects should be felt in the medium and long term.
The Abitam representative said that January and February were
"a little better" than last year for the pipes industry,
although March was not good.
FUTURE
After an intense exchange of criticism, Bolsonaro and Maia
announced they had agreed on reconciliation to help the adoption
of the pension reform which, in turn, could help revive optimism
- the last two days of trading on the Sao Paulo bourse in March
were up after falls for seven consecutive days.
Before the clash between the two, the Ibovespa index had
registered a period of growth-upon-growth and it even went over
the 100,000-points mark for the first time.
Furthermore, last week the government raised 2.719 billion
Brazilian real from the auction of a section of the North-South
railway and another 2.3 billion dollars from concessions
regarding 12 of the country's airports. The expectation is that
the economy will improve in the second half of the year and this
could be an incentive for Tubotech, the sector's main trade
fair.
Organized by CIPA Fiera Milano and Abitam, the event taking
place in Sao Paulo October 1-3 is orientated towards this
segment's big clients, such as the oil, gas, car, building,
mining and petrochemical sectors.
Brazilian and international producers of pipes, valves,
pumps, joints and components such as BTL Steel Works, Citic
Pacific Steel, Golan Plastic, HSG Laser, HTIDC, Inductotherm,
Intras, Kent do Brasil and Nacional Tubos will be among the
exhibitors.
"There are still some things to fix and regulate on the
fiscal side, but the pensions reform is a starting point,"
Baptista concluded.
"There is a road map of actions that need to be applied to
make the economy more ordered and this path starts with the
pensions".
Pipe sector 'full of hope' for Brazilian economy
Bolsonaro-Maia clash has dampened enthusiasm a little-Baptista