Brazil's cement sales recorded modest growth in the first nine months of the year, as steady infrastructure activity and resilient employment offset pressure from high interest rates and rising household debt.
Cement sales in January-September rose by 3pc on the year to 50.3mn t, supported by stable demand in urban development and public works, Brazil's National Cement Industry Union (SNIC) said. The country's historically low unemployment rates and high consumer confidence also contributed to a healthier construction market. Cement sales reached 6.1mn t in September, up by 4.6pc from a year earlier.
But high borrowing costs and tight credit conditions continued to weaken Brazil's real estate sector, the main driver of cement consumption in the country. New construction project launches in Brazil fell by 7pc in the second quarter, while the government's Minha Casa, Minha Vida (MCMV) housing programme declined by almost 16pc over the same period. And the number of units financed through the Brazilian Savings and Loan System (SBPE) construction credit system dropped by 55pc in the January-August period because Brazil's high benchmark Selic rate raised borrowing costs and slowed the availability of housing finance.
Still, cement demand is expected to increase by about 2pc on the year in 2025 under a baseline scenario, with growth likely concentrated in Brazil's housing and infrastructure segments, SNIC said. The government plans to further support the MCMV housing scheme, which could add 2.5mn-3mn t of annual cement demand through 2026 and help address Brazil's estimated deficit of 6mn housing units.
New mortgage credit models and a national housing renovation programme could also inject roughly 20bn reals ($3.7bn) into Brazil's real estate market, providing additional support. These measures aim to sustain construction financing, despite limited savings inflows and high funding costs.
Clinker imports reach multi-year high
As cement sales rise, some Brazilian cement plants have boosted clinker imports. January-September clinker imports rose to 732,600t, the highest volume since 2015 and up from 614,200t in the same period last year, customs data compiled by Global Trade Tracker (GTT) show.
Egypt was Brazil's top supplier during the period at 198,000t after first beginning shipments to Brazil in April 2024. Brazil also imported 102,700t of clinker from Pakistan over the same period. The country first shipped clinker to Brazil in April. And deliveries from Algeria doubled year on year to 98,200t in January-September.
But clinker imports from Turkey dropped by almost 8pc on the year to 141,900t.
