February sees 14% pick-up in Brazilian cement sales

February sees 14% pick-up in Brazilian cement sales
10 March 2021

Cement sales in Brazil increased 14 per cent YoY to 4.7Mt in February 2021, according to the country’s cement association, SNIC. Key drivers of the market expansion were the maintenance of real estate works and self-construction as well as favourable weather. Cement sales per working day increased 5.4 per cent MoM and 16.4 per cent YoY to 234,100t. Exports were up from 11,000t in February 2020 to 29,000t in February 2021.

As a result, the domestic cement market expanded by 11.8 per cent YoY to 9.74Mt in the first two months of 2021. In the 2M20 cement sales in Brazil reached 8.714Mt. Cement producers also shipped 58,000t of exports in 2M21, up from 25,000t in the 2M20.

Going forward, SNIC expects the positive results to continue until May but from June onwards YoY growth is expected to be more modest as the 2H20 saw a good sales performance. However, if the COVID-19 pandemic worsens and emergency benefits end cement sales will be negatively affected. Moreover, a significant increase in commodity prices and a sharp devaluation of the real may further affect cement producers.

“The strong pressure on the price of commodities is affecting the world and in Brazil the situation is worsening due to the sharp devaluation of the real. Thus, the national and cement industry, in particular, has been facing significant increases in production costs. More than ever, it is essential to accelerate mass vaccination and reforms, especially the tax,” said Paulo Camillo Penna, SNIC president.

Published under Cement News