Brazilian cement sales edge up in 1H19

Brazilian cement sales edge up in 1H19
12 July 2019

Cement sales in Brazil in January-June 2019 increase 1.5 per cent YoY to 25.8Mt, according to the country’s cement association, SNIC. In June 4.2Mt of cement were sold, down 15.7 per cent YoY.

In terms of domestic sales per working day increased 1.8 per cent MoM but fell 7.9 per cent when compared with June 2018.

"The performance of June ended up adjusting the high expansion of the month of May of 2019, which originated the very low performance of the same month of the previous year occasioned by the strike of the truck drivers. This expansion of 1.5 per cent in the first half was expected by our forecast. The expectation for the second semester is of a much more robust growth,” said Paulo Camillo, president of SNIC.

Industry performance is driven by the real estate market, which remains robust. "The number of real estate launches remains on a bullish trajectory. We have already noticed a greater participation of the industrial consumers, that is, of the formal construction in the sales of cement. In this sense, sectors such as concrete and cement-based artifacts once again gained share in sales. The expectation of the imminent approval of the pension reform, in line with that expected by the Government, added to market-friendly measures that are on the economic agenda, has the potential to reinject optimism in the sector. If these actions come to fruition, we should continue with the forecast of an increase of three per cent for the closing of the year," said Mr Camillo.

Published under Cement News

Tagged Under: Brazil Consumption SNIC