Brazil: Cement Industry Shows Slight Recovery
February 2024 saw cement sales rise to 4.6 million tons, marking a 3.9% increase from February 2023, amidst challenges and cautious optimism in Brazil.
In February 2024, the Brazilian cement industry experienced a modest uptick with sales reaching 4.6 million tons, a 3.9% increase compared to the same month in 2023, as reported by the National Union of the Cement Industry (SNIC).
This growth, although slight at 0.6% for the year's first two months, reflects positive trends in employment and formal job creation. Despite these gains, consumer confidence has fallen to its lowest since May 2023, reflecting the continued impact of high interest rates and household debt levels on financial perceptions. The construction sector's confidence, however, improved in February, signaling a moderate pessimism.
Challenges such as labor shortages and credit access persist, slowing the sector's development. The industry remains cautiously optimistic, banking on fiscal reforms, interest rate cuts, inflation control, and infrastructure and housing projects to fuel a projected 2% growth in consumption for the year.
This outlook is tempered by the memory of a 3-million-ton sales decline over 2022 and 2023.
Source: Guia do Investidor
