2014 World Cup Year Brazil is becoming a nightmare for Brazilian machine manufacturers, as well as importers. All major projects have been postponed or cancelled. The mining sector has decreased 23% since 2013 because of more modest purchasing from China, Brazil´s nr 1 partner for commodities.

The steel producing sector is a no-investment  low export sector. Many companies are presenting their Brazilian plants for sale. Brazilian steel is expensive, plants are less productive than elsewhere, labor costs are skyrocketing. And the worldwide steel sector is not doing well as well.

Car companies have in Febr. 2014 disclosed the installed capacities are excessive. Many new plants are considered unnecessary investments, no need for them. A  recent rush for an expected growing market has completely disappointed so far.

Argentina, the giant nr 1. partner for Brazilian made products, quietly collapsed, no dollars available to pay for imports and many Brazilian companies have stopped selling, mostly carmakers.

The agrobusiness is still booming, a 7% increase in 2013. But needs only a small part of imported or Brazilian made machines.

So, there we go again: worktime reduction, vaccations anticipation, no stock policy, lay offs, etc.

Funnily the Brazilian government acts as if everything is a marvel for sectors in actually heavy crisis. The billions spent with new soccer stadiums  must be justified and, an election year, bad news are to be hidden. The dollar rose 20% in the last 12 month and many large Brazilian companies like Petrobras are experiencing very bad times, the bond stock value down 30 - 35% in the last year.

Sugar and etanol plant manufactures are almost all broke, heavy transportation equipment as well, mining machines manufacturers are desperate for orders, foundry equipment is quiet.

Rough times ahead. Again.