The sale of cement per working day – which considers the number of days worked and has a strong influence on the consumption of 201 thousand tons in January represents an increase of 2.4% compared to the same month of the previous year and of 8.1% compared to December 2022.
Despite the good performance, the result requires careful evaluation. We see that the considerable growth has as its main origin a still quite weak base registered both in January and December, which had the worst performances of last year.
Even so, the sector continues to be impacted by the uncertainties of the economic situation in Brazil. The highs in inflation and interest rates, the indebtedness of families – which should only change with the support of the recovery of the labor market – point to a horizon that is still worrying.
The construction market continues to fall, both in sale of materialsas well as in the number of mortgages, making the confidence index in the sector recorded the fourth consecutive drop, as a result of the worsening of the business environment, given the possibility of maintaining interest rates at high levels for longer.
O pessimism is also verified by the consumerwhich continues to reduce purchase intentions for the coming months.
Although the scenario is not favorable, the cement industry remains optimistic about the resumption of investments in infrastructure and the possibility of increasing the presence of cement in housing and sanitation programs, and of concrete pavement as an option in tenders for streets, roads and highways.
There is an effective movement of the government team incorporating new architectural models and resources destined to boost the Minha Casa, Minha Vida program. In any case, the reflection of these changes should only be felt in the demand for cement and construction materials in the second half of the year.
“Due to a weaker base in 2022, we should have positive results in early 2023. Despite the growth in the period, we must be cautious. The great challenge for the cement sector in the face of such an unpredictable year will be to ensure a 1% growth, reaching a level close to 64 million tons, and to bring us back to a trajectory of expanding the sustainable commercialization of the product, contributing to the development of the country.”
Paulo Camillo Penna – President of SNIC
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