2024-01-22 14:24:11
According to data released by National Union of the Cement Industry (SNIC) no preliminary report with data on cement sales in Brazilin December, sales totaled 4.5 million tons, representing a growth of 0.3% compared to the same period in 2022. However, when analyzing the annual performance, the sector recorded a retraction of 1.7%, equivalent 1.1 million tons less compared to the previous year, marking the second consecutive drop following the 2.8% decline in 2022.
The analysis, published by SNIC, points to several factors that contributed to this scenario. The high interest rate throughout 2023, even following the downward cycle that began in August, kept the real estate market under pressure. According to the report, the high interest rate impacted production costs, discouraged investment in infrastructure and encouraged migration to financial products. It is possible to observe in the published document that the real estate sector, the main driver of cement consumption, showed a significant drop in launches, contributing to the reduction in demand for cement.
The publication also informs that in addition to economic conditions, extreme weather conditions, with temperatures and rainfall above average and drought in some regions of the country, compromised the construction schedules and affected the sale of cement. The study points out that efforts to reverse this scenario involve the resumption of the Growth Acceleration Program (PAC) by the government in 2023, with a forecast disbursement of R$1.4 trillion between 2023 and 2026. The report states that, however, To date, the program has not reached the necessary speed and has already suffered cuts in the 2024 budget.
José Antônio Valente, director of the franchises in construction Franquias Trans Obra, states that the preliminary report released by SNIC, offers a comprehensive view of the challenges faced by the sector in 2023, highlighting a 1.7% drop in sales compared to the previous year. The document identifies multifaceted factors that contributed to this decline, including the persistence of high interest rates throughout the year. “It is possible to note that the study talks regarding a notable drop in launches in the real estate sector, which contributed significantly to the reduction in demand.”
Still on the report, which can be viewed in full through the link provided at the beginning of the article, there is information regarding the challenges that the cement industry seeks not only for economic solutions, but also for environmental commitments. The study reports that during the 8th Brazilian Cement Congress (CBCi), the industry laid the foundations for the Net Zero Roadmap, aiming to accelerate the transition to a carbon-neutral economy by 2050. Furthermore, the report shows that the initiative, which includes the reduction of CO2 emissions and the commitment to co-processing highlights the sector’s responsibility to contribute to broader environmental goals, amid discussions on sectoral decarbonization targets and the implementation of a carbon market in Brazil. The challenge, however, requires not only efforts from the industry, but the cooperation of various stakeholders, from construction agents to government and academic entities, as noted in the report.
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