Cement sales in Brazil in January 2024 totaled 4.8 million tons, a drop of 2.4% compared to the same month in 2023 and an increase of 5.9% compared to last December, according to the Union National Cement Industry (SNIC).
Per working day, which considers the number of days worked and has a strong influence on consumption, cement sales were 198.6 thousand tons in January and represents a decline of 2.1%, compared to the same month of the year previous and 0.6% compared to December 2023.
Even though sales in January last year registered a strong base, today’s result signals that the weak performance in 2023 will persist into the beginning of 2024.
The sector continues to be impacted by high interest rates and debt, which put pressure on the financial situation and household consumption, even contributing to the drop in consumer confidence in January. This index registered the lowest level since May 2023, continuing the deceleration trend that began in September. The result is motivated by the worsening of the consumer’s current situation with the drop in income and purchasing power and negative expectations for the coming months, widespread across all ranges, with the exception of the highest.
Despite the control of inflation and the resilience of the labor market, there was an increase in informality and workers’ wages still remain in a slow recovery, with real values stagnating for four years.
O The construction market continues to fall, both in the sale of materials and in the number of real estate launches. However, the sector’s confidence index remained relatively stable. The infrastructure segment became less optimistic, while the residential building segment showed greater confidence, driven mainly by the good prospects with the Minha Casa, Minha Vida (MCMV) program.
There is an effective movement by the government team to accelerate MCMV hiring and boost the program. In any case, the impact of these changes should only be felt in the demand for cement and construction materials in the second half of the year.
Even though the year’s scenario is uncertain, the cement industry remains optimistic about the resumption of investments in infrastructure and the possibility of increasing the presence of cement and concrete pavement as an option in tenders for streets, roads and highways. Factors such as these lead to a projected growth in product consumption estimated at 2% for this year, an increase of approximately 1.2 million tons.
