BRAZIL DATA: August cement sales fall 2.5% on year amid high interest, national debt

Brazil's cement sales in August fell 2.5% on the year to 6 million mt, pressured by high interest rates and national debt, Flavio Guimaraes, economist at the National Cement Industry Union, told S&P Global Energy on Sept. 10.

Brazil's interest rate of 15% "continues to impact the number of financed units," Guimaraes said.

The Brazilian real estate market, an important driver of cement consumption, experienced a 6.8% on-year decline in new projects in the second quarter, according to the union's monthly report.

Additionally, the government program "Minha Casa, Minha Vida," which is seen as a driver of cement consumption, saw new projects decrease 15.5% on the year in the second quarter.

Additionally, Guimaraes highlighted the high level of the Brazilian population's debt, which stands at 48.73%, close to the historic high of 49.88% recorded in July 2022.

Unemployment in the second quarter stood at 5.8% despite a strong labor market in the country, Guimaraes added.

"The scarcity of labor and access to credit remain the main current limitations for businesses" in the cement sector, the union said.

Brazil's August inflation rate stood at minus 0.11% on Sept. 10, which Guimaraes considered good news, as this might prompt the interest rate to decrease going forward.

Guimaraes also attributed the decline in cement sales in August to the month's fewer business days.

However, although August volumes were lower, Brazil's cement sales in the first eight months of 2025 totaled 44.2 million mt, 2.8% higher on the year.

Overall, the National Cement Industry Union's expectations are positive, anticipating sales growth above 3% in 2025, Guimaraes said.

While Brazil produces almost all the cement consumed locally, there were concerns the country may introduce potential retaliatory tariffs in response to the US' tariffs on Brazilian goods, according to Guimaraes.

This is particularly concerning imported coke, a key raw material for the cement industry.

Platts, part of S&P Global Energy, assessed the ASTM I/II cement CIF Houston price at $94/mt on Sept. 4.