Brazil 9M cement demand slips

30-Oct-2018

Brazil’s cement producers sold 4.564Mt of cement to domestic customers in September 2018, down 5.6 per cent when compared to the 4.835Mt sold in the year-ago period, according to the country’s cement producers’ association, SNIC. In addition, they reported stable exports of 7000t in September.

In the first nine months of 2018 domestic sales slipped 2.2 per cent from 40.34Mt in 9M17 to 39.454Mt in 9M18. Exports edged up from 60,000t to 63,000t, representing a five per cent rise YoY. From January to September 2018 apparent cement demand in the country reached 39.6Mt, down 2.5 per cent YoY.

SNIC President, Paulo Camillo Penna, says that September figures reflect the poor performance of economic activity. “We do not see signs of improvement until the end of the year. Everything indicates that 2018 will close with a drop of close to two per cent in demand for the product. In this way, we will have the fourth consecutive year in the red, accumulating a retraction of 26 per cent in the period,” he said.

“In addition to the loss of the market, we have suffered significant impacts on important components of production and distribution costs, such as fuel (petcoke), electricity and freight. According to an updated survey, cement transportation expenses represented 28 per cent of the net revenue of the product, but with the application of the current minimum freight rate, we will be charged at 114 per cent of the freight amount,” he added.

However, he expects a better performance of the industry next year: “In the agenda of the candidates for the Presidency of the Republic there is recognition of the relevant role of the productive chain of construction for the country’s development, with employability, infrastructure and housing.”

Source: CEMNET