Brazil's cement demand rebounds, May sales hit 5.7 million mt

Demand for cement in Brazil increased in May 2025, according to the latest report from the Sindicato Nacional das Indústrias de Cimento (SNIC).

Following a decline in April, the data shows that 5.7 million tons were sold in the country in May 2025. This represents a 6.5% increase compared to the same month last year.

From January to May, sales surged by 4.6% compared to 2024.

The surge is largely attributed by SNIC to a weak sales base from January to May 2024, when the figures were affected by a weather-related disaster in the southern region.

The report claims that drivers behind the sales increase include a robust job market, with an unemployment rate of 6.6% recorded through April, as well as a record number of formal jobs and a decrease in informal employment. Additionally, real estate projects continue to expand, fueled by the Minha Casa, Minha Vida program, which accounted for 53% of all starts in the first quarter.

However, despite the surge, SNIC president Paulo Camillo Penna claims the cement industry could face serious challenges in the coming months.

"Real estate financing showed a sharp decline of 70.4% in units accumulated up to April 2025, already reflecting the rise in the Selic rate. The increase in the basic interest rate enhances competition between financial assets and real estate assets," said Camillo Penna. "In other words, investors who would allocate resources to real estate are now directing them to other financial avenues, which is extremely concerning for the construction market and cement sales."

Platts, part of S&P Global Commodity Insights, last assessed CEMDEX Turkey at $54/mt FOB on June 5.