Brazil's cement market expands 3% in August

Brazil's cement market expands 3% in August
10 September 2019

Apparent cement consumption in Brazil edged up 2.9 per cent YoY to 5.1Mt in August 2019, according to the country’s cement association, SNIC.

Domestic cement sales increased three per cent to 5.1Mt in August 2019 when compared with August 2018. When considering the number of business days, daily sales were up 5.1 per cent YoY and 4.1 per cent MoM.

In terms of regions, the southeast led growth with deliveries up 7.1 per cent YoY, followed by the southern region, which saw sales increase by 5.4 per cent YoY. In the northeast, sales fell by 5.6 per cent YoY, whereas in other regions they remained largely stable.

Cement sales in the first eight months of 2019 advanced by 2.9 per cent YoY to 35.9Mt

“The indicators are recovering. Construction GDP started to react in the second quarter, as did sales of construction materials such as rebar, crushed stone, among others, ”says Paulo Camillo Penna, president of SNIC.

Also according to the executive, the confidence indicators also rose again. “The construction survey by FGV and the industrial entrepreneur confidence index prepared by CNI rose for the third consecutive month. The FGV indicator is at its highest point since February 2015. The business environment is more favourable, showing a greater consistency of the resumption movement, ” he added. “The real estate sector remains the driver of cement demand. Accumulated launches up to June were 15 per cent higher than the same period last year, while sales increased 12 per cent over the same period.”

In addition, cement exports rose to 13,000t in August, up from 5000t in the year-ago period. In the first eight months, exports increased 13.6 per cent to 75,000t from 66,000t in the 8M18.

”The external environment appears as the biggest unknown in the scenario, at this moment, impacted by the US-China trade conflict that may have effects on the activity level,” explained Mr Penna.

Published under Cement News

Tagged Under: Brazil Consumption Exports SNIC