We worked on study of the first 6 month of 2020 and which was the impact on companies who imported charcoal from Paraguay. We tried to bring to you a vision for the next 6 months and how will be the end of this impredecible and madness period of time that we are currently going on and which is the balance compared to year 2019.
EUROPE
Almost all countries from Europe damanding best quality, there is a big market of a lot of restaurant and many people consuming barbacues. Spain and UK is the main consumers of paraguayan charcoal.
| currency | USD million | |||||
| 2019 | UNTIL MAY 2020 | MONTHLY AVERAGE | TOTAL 7 MONTHS | END OF 2020 | RESULTS END YEAR | |
| COUNTRY | ||||||
| NETHERLAND | 610 | 320 | 64 | 448 | 768 | 26% |
| UK | 5240 | 1650 | 330 | 2310 | 3960 | -24% |
| SPAIN | 4780 | 1480 | 296 | 2072 | 3552 | -26% |
| GERMANY | 3270 | 1680 | 336 | 2352 | 4032 | 23% |
| BELGIUM | 350 | 250 | 50 | 320 | 570 | 71% |
| ITALY | 330 | 330 | 66 | 462 | 792 | 140% |
| FRANCE | 140 | 120 | 24 | 168 | 288 | 106% |
| PORTUGAL | 80 | 170 | 34 | 238 | 408 | 410% |
| TURKEY | 910 | 260 | 52 | 364 | 624 | -31% |
In this information table, you can see that UK, Spain and Turkey were the most affected by the crisis, however our expectations is a drop of no more than 35% for these countries. Another very important notice is about that paraguayan charcoal gain more confidence in others countries in this currrent pandemic situation, countries like Belgium, Italy, France and Portugal who increased their flow of operations.
MIDDLE EAST
Middle east is a competitive price market, focus mainly on shisha charcoal, however there are many imports for restaurant charcoal as well.
| currency | USD million | |||||
| 2019 | UNTIL MAY 2020 | MONTHLY AVERAGE | TOTAL 7 MONTHS | END OF 2020 | RESULTS END YEAR | |
| SAUDI ARABIA | 3090 | 660 | 132 | 924 | 1584 | -49% |
| ISRAEL | 2970 | 1370 | 274 | 1918 | 3288 | 11% |
| KUWAIT | 2360 | 800 | 160 | 1120 | 1920 | -19% |
| LEBANON | 850 | 120 | 24 | 168 | 288 | -66% |
| EMIRATES | 490 | 50 | 10 | 70 | 120 | -76% |
| JORDAN | 290 | 120 | 24 | 168 | 288 | -1% |
| QATAR | 60 | 90 | 18 | 126 | 216 | 260% |
As you can see on table, we noted a sharp drop over this region, Emirates, Saudi Arabia, Lebanon and Kuwait. Israel, one of the most important market for charcoal from Paraguay could keep and even improve their records. and the strawberry on top of the cream was Qatar, who deserve a really tracing of their operation in the next months, a greatfull surprise considering the global situation.
OCEANIA
Australia is the main country who import white quebracho charcoal from Paraguay for restaurant and BBQ, the perspective for this beatifull and far country is good, and we think even for next year the records will be increasing.
| currency | USD million | |||||
| 2019 | UNTIL MAY 2020 | MONTHLY AVERAGE | TOTAL 7 MONTHS | END OF 2020 | RESULTS END YEAR | |
| AUSTRALIA | 60 | 40 | 8 | 56 | 96 | 60% |
NORTH AMERICA
North America is a very demanding market, like some countries from Europa as well, and has the particulary that we compete with supplier from Centre of America (for example Honduras and Nicaragua) and also Colombia, not the same luck for the Marabu from Cuba, who has limitations to enter in the USA market.
| currency | USD million | |||||
| 2019 | UNTIL MAY 2020 | MONTHLY AVERAGE | TOTAL 7 MONTHS | END OF 2020 | RESULTS END YEAR | |
| USA | 1770 | 1010 | 2020 | 1414 | 2424 | 37% |
| CANADA | 290 | 190 | 38 | 266 | 456 | 56% |
The espectative for this region is very good, and hope we can close the year as the records project.
This was our analysis of the situation of the charcoal business since January to May and our espectative to end of year, of course there are many particulary politics and economics problematic from each country, but our mision is take a current global vision. If you are from any this countries and want to leave us a comment, feel free to do it, we want to know your opinion and if match with our analysis.
Source: Penta transaction and also some comments of our contacts.