Brazilian cement demand edged up by 1.1 per cent YoY to 5.262Mt in January 2026 from 5.203Mt in January 2026, according to data from the national cement association, SNIC.
Unemployment fell to 5.1 per cent and an increase in household income supported this growth, along with construction confidence showing its highest levels since March 2025, driven by infrastructure investment and record hiring in the Minha Casa, Minha Vida housing programme. New financing rules for middle- and high-income earners lent further support. However, maintaining the Selic rate at 15 per cent per year and the high indebtedness of families remained key challenges. Moreover, the shortage of labour in construction remains a structural bottleneck for 2026, added SNIC.
The country’s largest market, the southeast, reported the largest decline of 4.8 per cent YoY to 2.256Mt from 2.369Mt in the equivalent period of the previous year. In addition, demand in the south also contracted, by two per cent YoY, to 0.887Mt. However, the northeast, the country’s second-largest market, saw consumption increase by 13.6 per cent YoY to 1.299Mt from 1.143Mt. Demand in the central-west region increased by 3.1 per cent YoY to 0.558Mt from 0.541Mt while in the north its rew 6.9 per cent YoY to 0.262Mt from 0.245Mt.
Exports declined by a third to 4000t in January 2026 from 6000t in the previous year’s equivalent month.
Outlook
“We started 2026 with the construction industry's confidence at its best point in the last 10 months. The resilient job market and rising incomes form a solid base, but we still face the challenge of interest rates at 15 per cent, which penalise medium and high-end mortgage lending and household consumption. Our expectation rests on the start of the Selic rate cut cycle scheduled for March and the continuation of investments in infrastructure and the Minha Casa, Minha Vida programme, which remain major drivers of cement consumption in the country. Inflation converging towards the target and a more stable exchange rate could also become important allies for the sector in the coming months,” said SNIC President, Paulo Camillo Penna.
