Brazilian cement market expands 4% in November

Brazilian cement market expands 4% in November
09 December 2019

Cement sales in Brazil increased 3.9 per cent YoY in November to 4.7Mt, according to SNIC, the country’s cement association. Apparent cement consumption, which includes imports, totalled 4.7Mt, up 3.5 per cent YoY, in November 2019.

SNIC attributed the rise in sales to the recovery of the real estate sector. "The number of new residential launches accumulated an increase of 17 per cent until September compared to the same period of 2018. The number of new properties financed by SBPE (Brazilian Savings and Loan System) also presents a good result this year, with growth of 45 per cent. comparing January to September 2019 with January to September 2018," says Paulo Camillo Penna, president of SNIC.

A reduction in residential real estate inventories has been reported in some regions, presssuring the market to release new units, said SNIC.

Sales in the January-November 2019 period advanced 3.6 per cent to 50.5Mt, when compared with January-November 2018. In the last 12 months, cumulative sales reached 54.5Mt, up 3.3 per cent YoY. Apparent consumption rose by 3.4 per cent YoY in the 11M19 while in the last 12 months, the indicator grew by 3.1 per cent YoY.

"The improvement of the macroeconomic environment made this recovery possible. Low and controlled inflation, combined with new interest rate financing lines and a new modality, with an inflation index (INPC) plus interest rates, warmed the real estate market ," added Mr Penna.

Exports from Brazil rose from 8000t in November 2018 to 25,000t in November 2019. In the 11M19 exports advanced from 88,000t in the 11M18 to 124,000t.

Published under Cement News