Cement sales in Brazil slipped 0.2 per cent YoY to 5.335Mt in November 2024 from 5.365Mt in November 2023, according to the country’s cement association, SNIC. However, sales per business day were up by 4.6 per cent YoY to 255,000t. 

Cement sales in the southeast, the country’s largest market, dropped by 5.5 per cent YoY to 2.364Mt in November 2024 fro 2.501Mt in the year-ago period. The northeastern region, the second-largest cement market, saw cement sales advance by 7.4 per cent YoY to 1.208Mt from 1.125Mt in November 2023. Growth was also reported in the south, where cement dispatches were up 8.1 per cent YoY to 931,000t from 861,000t over the same period, and in the north, which saw a 3.9 per cent pick-up to 267,000t from 257,000t in November 2023. However, in the central-western region, the market contracted by 5.8 per cent to 585,000t in November 2024 from 621,000t in November 2023.

Exports fell by 60 per cent from 10,000t in November 2023 to 4000t in November 2024. 

January-November 2024
In the January-November 2024 period, cement sales in Brazil increased by 4.3 per cent YoY to 59.965Mt from 57.52Mt in the 11M23. Sales per business day increased 3.4 per cent YoY. 

SNIC attributes the improvement in sales to the continuous improvement in the labour market and the population’s income with the payroll reaching an historic record. Consumer confidence increased in November, resuming the growth trajectory that started in June.

In addition, the real estate market continued to expand in the 3Q24, driven by the performance of the Minha Casa, Minha Vida programme, responsible for 50 per cent and 44 per cent of sales in the period, according to SNIC. Sales of construction materials and real estate financing also improved. 

However, construction confidence was impacted by the shortage of labour and the high cost of hiring, which increased wages, putting pressure on inflation. Combined with the new expansionary cycle of the Selic rate, construction confidence fell to its lowest level in November since April 2024. 

Moreover, the rise in the value of the dollar raises concerns about increased production costs, particularly for petcoke. Brazil’s cement sector is increasing its use of alternative fuels. “The Brazilian cement industry celebrates the approval of the regulated carbon market in Brazil. The sector has been making significant efforts to reduce its emissions for thirty years. These actions, while positioning us as a world leader in low CO2 emissions, create even greater challenges compared to those countries that have done little or nothing. These efforts need to be recognized, so as not to penalize precisely those who have done the most so far,” said SNIC President, Paulo Camillo Penna.

Meanwhile, exports dropped by 68.7 per cent YoY to 61,000t in the 11M24 from 195,000t in the year-ago period.