Deteriorating outlook for Latin American cement, says Fitch Ratings

The outlook for the cement market in Latin America is deteriorating, according to Fitch Ratings. This is being blamed on softening demand in most markets and persistent cost inflation, which will be partially mitigated by lower energy costs.

The expectation of higher interest rates and continued inflationary pressures is expected to curb disposable income, resulting in a cooling off of demand in home improvement and remodelling trends. Lower government stimulus that had allowed for a strong recovery post-pandemic, coupled with a poor performance in infrastructure and residential housing markets in most countries during 2023 are further negative headwinds for cement demand in 2023 within Latin America, says Fitch Ratings.