Brazilian cement sales up 2% in August

Cement sales in Brazil increased by 1.8 per cent YoY to 5.973Mt in August 2023 from 5.867Mt in August 2022, according to the national cement association, SNIC.

The recovery of the macroeconomic framework and of the labour market as well as the initial results of the debt settlement programme (Programa Desenrola) are leading to improved consumer confidence. However, the lower income of the population, high interest rates and high family indebtedness are continuing to affect cement sales.

Brazil’s government also launched the New Growth Acceleration Program (PAC3) in August, representing investment of BRL1.4trn (US$281.2bn) between 2023-26 and a doubling of roads across the country with expected investment of BRL186bn that could open up opportunities for the cement industry.

Measures to reduce the red tape around the Minha Casa Minha Vida housing programme and facilitate the purchase of property with a reduction of interest rates and an increase of subsidies are starting to have an effect, reflected by an increase in sales of units in the programme.

The progress on infrastructure and hosuing has been welcomed by the cement industry. “The implementation of infrastructure projects with an emphasis on logistics, sanitation and housing could reverse the negative performance of the cement industry registered until August. Our expectation is that the positive seasonality in the sector's sales in the second half of the year will be confirmed,” said Paulo Camillo Penna, president of SNIC.

The southeast, the country’s largest market, saw sales advance by 4.3 per cent YoY to 2.697Mt, followed by a 3.5 per cent YoY rise to 1.176Mt in the northeast, the country’s second-largest market. There was a 1.7 per cent contraction to 0.984Mt in the south, and a 1.6 per cent drop in sales to 0.734Mt in the central-west while the north reported a 7.7 per cent fall in sales to 0.265Mt.

Meanwhile, exports declined by 53.8 per cent to 18,000t in August 2023 from 39,000t in August 2022.

January-August 2023
Cement sales in Brazil in the January-August 2023 period slipped by 1.1 per cent YoY to 41.555Mt from 41.999Mt in the 8M22.

Sales in the southeast were down by 0.2 per cent YoY to 19.462Mt in the 8M23 period. In the northeast sales increased by 1.5 per cent to 8.304Mt while in the south volumes reported were down 3.2 per cent YoY to 7.116Mt. Central-western sales fell 4.1 per cent YoY to 4.885Mt while in the north sales contracted by 4.3 per cent YY to 1.788Mt in the 8M23.

Exports saw a 43.7 per cent drop in the 8M23 to 152,000t from 270,000t reported in the 8M22.