Domestic cement sales in Brazil totalled 4.5Mt in January 2019, according to the National Union of the Cement Industry (SNIC). When compared with January 2018, the latest data reflect an advance of 4.2 per cent. In terms of days worked, domestic sales advanced 2.5 per cent MoM.
Domestic sales jumped by 10.8 per cent in Brazil’s south to 738,000t and significant gains were also reported in the central-eastern part of the country with sales increasing 7.6 per cent to 467,000t. However, in the key market of the southeast, sales only advanced moderately by 2.6 per cent to 2,131,000t and in the northeast, the market expanded by 3.3 per cent to 1,003,000t. The small northern market was the only region that saw a contraction, by 4.8 per cent to 200,000t.
Apparent cement consumption, which includes imports, in the country rose by 4.1 per cent YoY to 4.6Mt. Exports slipped from 8000t in January 2018 to 7000t in January 2019.
The president of the SNIC, Paulo Camillo Penna, thinks that, although it is positive, the result of one month is insufficient to verify a clear and sure recovery trend.
"The performance of the sector is basically supported by two segments: building (commercial, industrial and residential) and infrastructure. The beginning of the recovery is being pulled by the real estate market, which at the end of last year was marked by a series of real estate launches, notably residential buildings, "explained Mr Penna.
Real estate launches increased by 30 per cent between January and November 2018. However, the infrastructure sector remains flat. "In the infrastructure sector, the main inducer of cement consumption, we still have not seen improvements. This is due to the absence of investments, caused by the fiscal deficit and concession programs that have not yet performed as expected," concludes Mr Penna.
