Heated By Increased Online Shopping And Delivery, Packaging Sector Records Rise In Energy Consumption In August

According to the Comerc Index, the sector closed August with an increase in energy consumption compared to the same period in 2019

São Paulo, September 2020 – Contrary to the crisis caused by the Covid-19 pandemic, the Packaging sector has been operating at full steam. The implementation of isolation measures to contain the virus led to an exponential increase in online commerce and food delivery, resulting in higher demand for packaging. The sector closed August with a slight increase in energy consumption: 0.88% compared to the same month in 2019. This is indicated by the Comerc Index, which measures energy consumption in the 11 main sectors of the economy.

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The sector’s encouraging performance has been observed for several months. In the first half of the year, the country produced 357,000 tons of cardboard – an increase of 1.4% compared to the same period in 2019, according to the Brazilian Tree Industry (Ibá). Meanwhile, the production of corrugated cardboard recorded an 8.16% increase in July compared to the same period in 2019, according to the Brazilian Association of Corrugated Paper – ABPO.

For Marcelo Ávila, Vice President of Comerc Energia, energy consumption by the Packaging sector is expected to intensify even further until the end of the year. “Even with the easing of isolation measures, we see that online and delivery consumption should remain high, as it has been well received by consumers. Furthermore, the last quarter of the year tends to be favorable for the sector due to holiday dates, such as Children’s Day [October], Black Friday [November], and Christmas [December].” Ávila emphasizes that other sectors are likely to be impacted as these dates approach, including Food and Retail, which tend to intensify their activities at the end of the year.

Optimism about the recovery can also be observed in the Chemical sector – which, like the Packaging sector, remained heated even during the pandemic and showed an increase of 3.8% in August compared to August 2019. According to a survey by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV), in August approximately 40% of industrial segments reported a higher level of confidence than observed in the pre-pandemic period, with the chemical industry ranking third, just behind Textiles and Vehicles.

In August, eight of the 11 sectors monitored by the Comerc Index showed an increase in energy consumption compared to the previous month (July). Among those that saw a decline, Food and Paper & Pulp remained at historical averages (2.13% and 2.52%, respectively); Construction Materials, which proved to be strong during the pandemic, saw a decline of 7.02%. “All sectors are eager for recovery, which has already been observed, albeit modestly. It’s early to evaluate, in the annual aggregate, which sectors will be more or less impacted by the pandemic, but seeing the market heating up and preparing for the last quarter should be viewed positively,” Ávila concluded.

Methodology

The Comerc Energy Index, published monthly, takes into account the consumption of over 2,300 units in its portfolio, belonging to approximately 1,100 companies that purchase electricity in the free market.

About Comerc Energia

Comerc Energia is the largest and most comprehensive service provider related to the energy market in Brazil. With a portfolio consisting of over 2,300 consumption units belonging to approximately 1,100 companies, its revenue was around R$ 3 billion in 2019. Comerc Energia comprises seven business units to fully meet its clients’ needs. Comerc Gestão is the largest energy management company in the country, responsible for managing 3,500 average MW in 2019, equivalent to 5% of the energy consumed in the country. It also manages approximately 5 GW of power from over 130 generators, independent producers, and self-producers, equivalent to 35% of the total power of the Itaipu hydropower plant.

Comerc Trading is one of the largest independent traders in the country, negotiating an average of 1.6 GWm per month in 2019, considering both purchasing and selling operations. Newcom is an independent trading company focused on structuring complex operations involving the purchase and sale of energy contracts. Its portfolio also includes profit protection and financial anticipation operations. Comerc Gás manages natural gas consumption, assisting in contracting this input, with possibilities for cost reduction for companies and support for complex regulatory solutions. Meanwhile, Comerc Esco structures distributed generation projects and manages generation and consumption, as well as developing and implementing energy efficiency solutions, focusing on reducing electricity consumption. Finally, MicroPower-Comerc develops projects for storing electricity in batteries.

In the field of innovation and technology, Comerc operates through DocLabs, with a space to accelerate startups; and with technology solutions for corporations, through the company DOC 88.