Brazilian cement demand falls 20% in May

Brazilian cement demand falls 20% in May
10 July 2018

Brazil’s cement market contracted by 20.3 per cent YoY in May from 4.503Mt to 3.588Mt (excluding imports), according to the latest data published by SNIC, the country's cement association.

In the southeast, the largest market in the country, sales fell 17.5 per cent to 1.729Mt from 2.095Mt in May 2017. In the northeast sales decreased 23.2 per cent from 940,000t in the equivalent year-ago period to 722,000t in May 2018. A 20 per cent decline was recorded in southern Brazil with sales down to 591,000t from 739,000t in May 2017. In the central-western part of the country the drop was the largest at 25.3 per cent YoY to 378,000t while in the north, Brazil’s smallest market, volumes fell 24.7 per cent YoY to 168,000t.

SNIC has attributed the drop in sales on the road transport strike and subdued economic activity. Previously, the sector was anticipating 1-2 per cent growth for the year, but the strike and its repercussions throughout the supply chain combined with weak economic activity has led to predictions of a market contraction, according to Paulo Camillo Penna, SNIC president.

Exports advanced by 60 per cent from 5000t to 8000t in May 2018.

In the first five months of 2018 domestic sales (excluding imports) declined 4.5 per cent to 20.42Mt from 21.379Mt in 5M17. In the southeast and south sales slipped by some 2.4 per cent to 9.827Mt and 3.429Mt, respectively. In the central-western part of Brazil sales fell 5.1 per cent YoY to 2.057Mt in 5M18. The northeast saw volumes sold decrease by 9.4 per cent to 4.191Mt YoY while the north reported the largest decline at 9.8 per cent to 916,000t.

As the domestic market experienced a downturn, cement producers sought solace elsewhere and exports increased by 5.7 per cent from 35,000t in 5M17 to 37,000t in 5M18.

Published under Cement News

Tagged Under: Brazil Consumption Exports SNIC