SAO PAULO , Jan. 11, 2013 (RISI) -
Together with other industrial segments in Brazil, printers in the country are worried about the slow production pace registered throughout 2012. According to the latest data released by the Brazilian Graphic Industry Assn (Abigraf), output slumped 9.5% in the third quarter of 2012 over the same period of 2011. The entity hasn't yet disclosed 2012 full-year figures, but revealed that in the nine first months of the year the decrease totaled 4.3%. "This scenario worries us a lot, as the Brazilian processing industry has been suffering a lot with tax costs and our currency depreciated only in the last months of the year," detailed Abigraf's president, Fábio Arruda Mortara. The executive stressed that the graphic sector, specifically, pays 9.5% for PIS/Cofins taxes, while a Chinese producer that exports a finished book to Brazil is exempted from extra charges, due to duty-free regulations in Brazil for editorial and cultural production.
According to Abigraf, the editorial segment registered a dramatic 17% drop in the third quarter, while newspapers' volume was 3.4% lower. Commercial printing also declined 9.7% year-over-year. Paper or corrugated paper printed packages was the segment that registered better figures, increasing 3% in January-September, but it also declined 0.8% in the third quarter comparison. "This is the only segment that has been supporting printers, but it is still not enough to assure that our annual figures will improve," stated Mortara.
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