Cement sales in Brazil edged up 2.3 per cent to 5.359Mt in November, according to the country’s cement association, SNIC. The latest data follow a continued growth trend but with decelerating magnitude as the market stabilises and the effect of the low base due to COVID-19 wanes. In April growth reached 20.8 per cent.
In addition, exports declined 46.8 per cent to 5384t in November 2021 from 5288t in November 2020.
In the January-November period, domestic sales were up 6.8 per cent YoY to 59.6Mt. Exports in the 11M21 increased 58.2 per cent YoY to 386,000t from 244,000t in the 11M20.
Outlook
However, the sector continues to be highly impacted by high input costs and logistics and is expected to see tight financial results.
“Consumer confidence retreated again in November, according to FGV, a reflection of the worst perception of the economic situation. The combination of lower income and higher inflation is harmful for the population, which suffers from indebtedness, starting to focus their expenses on essential goods such as food and clothing, leaving fewer resources for other expenses such as building or renovating a house,” said Paulo Camillo Penna, SNIC president.
“As long as we remain with high inflation, tight monetary policy, higher indebtedness of low-income families and economic uncertainties, market confidence will continue to decline,” according to SNIC.
“For consumers, the negative points are linked to high unemployment and the lack of prospects for the creation of new jobs that directly impact the population's family income.
“The confidence of construction entrepreneurs fell for the second consecutive time. This time, the concern is directly linked to the economic slowdown, influenced by the rise in interest rates, high inflation and the monetary tightening carried out by the Central Bank, which undermined expectations of continued improvement in business,”
