Cement sales in Brazil increase 14% in August

Cement sales in Brazil continued to rise in August with a 13.6 per cent YoY increase to 5.7Mt, reported the country’s cement association, SNIC. Per working day, sales reached 244,400t, representing a YoY increased of 18.5 per cent and 3.7 per cent MoM.

The central-western region saw sales up 25.3 per cent YoY to 728,000t while in the northeast and north sales advanced to 1,197,000t (+23.9 per cent) and 268,000t (+22.9 per cent), respectively. In the south sales were up 11.6 per cent to 936,000t while in the southeast, the country’s largest market, the increase was more modest at 6.7 per cent to 2.615Mt.

For the year to date, sales advanced 7.5 per cent to 38.6Mt when compared with the 8M19. The northeast reported the strongest growth at 12.6 per cent YoY to 7.889Mt, followed by the central-western region, where sales advanced 10.8 per cent to 4.4Mt. In the north and south the market expanded by 5.9 per cent to 1.642Mt and 6.361Mt, respectively. The southeast saw sales advance by 5.4 per cent to 18.345Mt.

“Despite the positive numbers recorded in recent months, the sector still suffers the consequences of the strong crisis between 2015 and 2018, which caused the loss of almost 30 per cent of demand, the closure of 20 factories and dozens of kiln, causing an idle capacity above 45 per cent and is still far from being recovered, constituting a severe capital burn.

“In addition, the sector has been suffering from strong pressure from electricity, thermal energy, freight and other inputs in the cement production process since 2015, in addition to a huge cost of capital invested.

“For this reason, the return of real estate launches, the maintenance of the rhythm of the works and the economic activity that will maintain the self-builder's breath is fundamental for the sector. Infrastructure remains an extremely important activity for the cement industry, but it still remains underperforming,” said INC President, Paulo Camillo Penna.

Robust export growth
Meanwhile, exports surged from 13,000t to 28,000t in August 2020 when compared with August 2019.  For the first eight months of 2020, they advanced 79 per cent YoY to 145,000t from 81,000t when compared with the 8M19.