Cement sales in Brazil see best result in almost 10 years

Cement sales in Brazil grew in August in both monthly and annual comparisons, reaching the highest level in almost 10 years, driven by factors such as dry weather in almost the entire country and a boom in the real estate sector, according to data released this Monday by the association of cement producers, Snic.

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Cement sales in August totaled 6.2 million tons last month, the highest volume for a single month since October 2014, when total sales reached 6.7 million tons, the entity reported. Sales were also 5% higher than in July and 3.3% above the volume in August last year.

“All regions showed growth in sales (year-to-date). The North and Northeast of Brazil recorded the best performance. The South, which had been recording declines until July, returned to growth levels prior to the floods in Rio Grande do Sul. The Center-West region, on the other hand, continues to show positive results, as does the Southeast,” SNIC stated in a press release.

Per business day, cement sales rose 5.6% in August compared to the previous year, to 252 thousand tons, according to Snic.

In the year to date up to the end of last month, cement sales in Brazil totaled 43 million tons, an increase of 3.1% over the previous year and above the expectations of Snic, which had been working with a scenario of growth of 1.4%, revised downwards at the beginning of July after the climate disaster in Rio Grande do Sul.

But if the dry climate favors the progress of the works, a scenario of lack of rain for a prolonged period poses risks given the potential effect on electricity prices, logistics, as well as repercussions on logistics, since the material is often transported by rivers to consumer markets, mainly in the North region.

“The announcement of the increase in the energy bill with a red flag in Brazil due to the lack of rain is already causing concern for the cement sector, both in terms of production costs and logistics. Brazil is facing the worst drought in history in 2024 and this could impact cement sales, especially in the North region,” said Snic.