Information note on trade in intermediate goods: second quarter 2022, WTO, Feb. 2, 2023.
World exports of intermediate goods (IGs) increased by 4 per cent year-on-year (YoY) in the second quarter (Q2) of 2022, a slower
pace of growth than observed in 2021.The 20 per cent increase in exports of intermediate food products largely contributed to trade growth within supply chains, while
exports of ores, precious stones and rare earths fell by 11 per cent in response to declining iron ore prices.Brazil reached the top 15 IG exporters (13th position) owing to massive seasonal exports of soybeans, which were mainly sent to
Chinese industries.Similar to global IG growth, the rise in most regional trade flows was lower in the second quarter of 2022 compared with previous
quarters. European IG exports to Asia declined significantly by 11 per cent.
IG exports by region, Q2 2022
World IG exports grew less in the first half of 2022 than in
2021. However, YoY growth still increased by 4 per cent in
Q2 2022, reaching more than US$ 2.5 trillion, which held
relatively stable in the last quarters.
Compared with Q1 2022, the highest growth was 22 per
cent for South and Central America and 9 per cent for North
America. The huge seasonal increase in exports of soybeans
from Brazil (90 per cent, US$ 20 billion), mostly destined for
China, largely supported the rise observed at the regional
level. The growth observed for North America was linked to
the 74 per cent increase in US gold exports, in particular to
Europe and Asia.
The quarterly YoY rebound of 5 per cent observed for Asia
was a result of the global rise in China’s IG exports, and more
specifically those shipped to regional partners.
World IG exports by category, Q2 2022
Intermediate food products sustained a high export growth
momentum during the first half of 2022, with a 20 per cent
YoY increase in Q2 2022, valued at more than US$ 120 billion.
World exports of other industrial supplies1 rose by 9 per cent
YoY in Q2 2022. While the export of manufacturing parts and
accessories (excluding transport equipment) fell by 1 per
cent YoY, affirming the downward trend observed since the
beginning of 2022.
The exports of ores, precious stones and rare earths had also
exhibited a downward trend since the beginning of 2022. The
marked YoY decrease of 11 per cent in Q2 2022 essentially
reflects the decline of iron ore prices observed since March.
Top IG exporters, Q2 2022
Major IG traders (i.e. Germany; Hong Kong, China; Japan;
Belgium) faced negative YoY growth of their exports of industrial
inputs in Q2 2022.
The overall decrease in exports from Hong Kong, China by 10 per
cent was characterized by a decline of more than 30 per cent
of its delivery of high-tech components (memories, integrated
circuits) to Chinese manufacturers.
Brazil rose to the 13th position of top IG exporters in Q2 2022,
with a growth of 8 per cent, mainly due to soybeans exports, and
accounting for US$ 61 billion.
Belgium’s decrease of IG exports (10 per cent) was essentially a
result of a reduced supply of rare metals (rhodium, palladium)
and machine parts to production partners in Germany, the
United Kingdom and the United States.
Inter- and intra-regional IG trade, Q2 2022
Most regional IG trade flows grew at a slower pace in 2022 than in
2021, with some negative growths appearing during Q2 2022.
European shipments of industrial inputs to Asia decreased by
11 per cent YoY in Q2 2022. This decline was perceived in the
majority of European economies, with exception of the United
Kingdom, which increased gold exports to China and Hong Kong,
China.
Regional IG exports destined for Africa were among the highest
increases in Q2 2022. Although the total value at under US$ 10
billion is low, exports of manufacturing and agricultural inputs
from North America and South and Central America increased by
32 per cent and 37 per cent YoY, respectively – mostly due to US
shipments of soybeans and wheat.
Africa exports of industrial inputs to South and Central America
increased the most among all inter-regional flows (100 per cent
YoY). Such bilateral exchanges (e.g. exports of urea and ammonium
to the fertilizer industry in Brazil) were the most dynamic in recent
quarters.
Top IG importers, Q2 2022
Overall imports of industrial inputs in China decreased by 8 per cent
YoY in Q2 2022. Asian partner economies were the most affected.
Imports of iron ores from Australia were among the major declines
(-25 per cent, a drop of more than US$ 8 billion), in relation to the fall
in prices during the same period.
Re-imports of intermediate inputs that are largely sourced from
Hong Kong, China, and reported as China’s imports from China,
decreased by 25 per cent and mainly concerned back and forth
exchanges of inward processing materials such as memories.
Mexico had the highest growth (27 per cent) among the top IG
importers in Q2 2022. Compared with the end of 2021, the economy
has risen four positions in the top IG importers ranking, highlighting
its activity in manufacturing supply chains.
UK imports of inputs had declined by 10 per cent by mid-2022. Gold
imports were among the most affected, dropping by around 80 per
cent from Kazakhstan and Switzerland, regardless of rising prices.
https://www.wto.org/english/res_e/statis_e/miwi_e/info_note_2022q2_e.pdf