Brazil's cement market expands 7% in July

Domestic cement sales in Brazil saw a 6.9 per cent YoY advance to 5.848Mt in July 2024 from 5.472Mt in July 2023, reports the country's cement association, SNIC.

Sales volumes benefitted from a larger number of working days when compared with 2023. A drop in unemployment and rising incomes increased consumer confidence for the second month while optimism in the construction sector further supported sales of cement. However, the sector remains affected by high interest rates (10.5 per cent) and high household indebtedness.

“The industry recorded growth for the first time this year in all regions of the country, reflecting the seasonality of greater cement sales in the second half of the year. On the other hand, there is an effective concern about the external environment and its impact on the Brazilian economy, particularly with imported inputs for the activity,” said SNIC Chairman, Paulo Camillo Penna.  

In terms of regional growth, the southeast, the country's largest market, saw a 4.4 per cent YoY uptick to 2.684Mt in July 2024 from 2.57Mt while the northeast market expanded by 9.8 per cent YoY to 1.195Mt from 1.088Mt. Sales in the south were up 8.3 per cent YoY to 0.964Mt from 0.89Mt. In the central-west demand rose by 5.3 per cent YoY to 0.717Mt from 0.681Mt in July 2023. Brazil's smallest market, the north, expanded by 18.5 per cent YoY to 0.288Mt in July 2024 from 0.243Mt.

However, exports dropped by 72.2 per cent YoY to 5000t in July 2024 from 18,000t.

January-July 2024
There was a 2.3 per cent YoY advance in Brazil's cement consumption in the January-July 2024 period as 36.409Mt was sold when compared with 35.587Mt sold in the first seven months of 2023.

Cement sales in the southeast edged up by 0.8 per cent YoY to 16.794Mt in the 7M24 from 16.656Mt. Growth in the northeastern market was more marked at 4.7 per cent, with sales advancing to 7.463Mt in the 7M24 from 7.126Mt in the 7M23. In the south, there was a 0.5 per cent YoY uptick to 6.164Mt from 6.131Mt over the same period while sales in the central-west were up by 2.5 per cent YoY to 4.256Mt in the &m24 from 4.151Mt. Dispatches to the north increased by 13.7 per cent YoY to 1.732Mt in the 7M24 from 1.523Mt.

Exports fell by 70.4 per cent YoY to 40,000t in the January-July 2024 from 135,000t.