Brazil pumps up the volume

Published 13 August 2012

Tagged Under: market report 

Brazil’s cement market has blossomed in recent years. Sales exceeded 64Mt in 2011, an increase of 7.6 per cent YoY. Cement manufacturers continue to add new capacity, but the economy has begun to slow and the government has been forced to further supplement its public spending on construction.

Workers take a break at Lafarge’s Arcos cement factory with the Polysius kiln pictured behind

‘Make hay while the sun shines’ is an apt phrase to describe Brazil’s cement market. Cement sales are consistently strong and Sindicato Nacional da Indústria do Cimento (SNIC) estimated that at the end of 2011 Brazil’s installed cement capacity had reached 78Mta with an expected increase to 111Mta by the end of 2015.

Producers are adamant that further cement capacity is required if they are to retain or win greater market share. This may seem a fabulous prospect while cement prices remain high and several large infrastructure projects have yet to be completed. However, there are signs of economic weakness and the vibrancy in last year’s construction sector has been slow to resurface. Brazil’s cement manufacturers could soon be under pressure to sustain their high sales volumes.

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