Wednesday, December 11, 2013

Below the predicted, consumption in the country should close the year with a high of 2.6%

Cement consumption in the country closes the year again with growth, but well away from the exuberance of 2010, when it surged to 14%. The performance of 2013, as the expectation in the industry, will be in the range of 2.6%, above the country's GDP. With the closing of the November domestic sales of 6 million tons, already an estimated 71 million tonnes in total. The number, record for the cement industry in the country, is the result of the sum of the product sold by local industry over the imported material.
According to the National Union of the cement industry (SNIC), which brings together manufacturers installed in the country, the November result indicated high of 2.3% on a year ago. In this year, the amount is 64.9 million tonnes and represents 2.5% increase on the same period in 2012.
The expansion of consumption, admits José Otavio Carvalho, Chief Executive of SNIC, was below the forecast outlined at the beginning of the year. The industry estimated somewhere between 3.5% and 4%. The result is a reflection of deceleration of the Brazilian economy. "The growth of demand for cement is sustained in large part by the construction of buildings for housing and commercial uses and services," said the Executive of the ICNS.
In Brazil, said Carvalho, about 75% of the cement still intended for buildings and a quarter of the total for infrastructure works. In developed countries, half or more of consumption is for large works.
For 2014, a presidential election year, Governors and Congressional renewal, predicting something between 3% and 4%, signaling demand support for housing construction activity. For affordable housing programs and the availability of credit for the purchase of home ownership. In addition, middle-class income and the buying power of high class stimulate investments in acquisition of properties and in reforms.
Oak assesses that the concessions of infrastructure, such as airports, roads and ports will only take effect on demand of cement from 2015 onwards. "We do not see even a sustainable program of long-term infrastructure that is an engine of consumption for our industry".
For the first time, the local cement plants will have to beat the mark of sale of 70 million tons in a year. This represents an increase of 70% since 2006, the year he began the resumption of demand in the sector with the housing boom and growth of the country's economy. Imports should be 900 thousand tons (with emphasis on North and Northeast), same level of 2012.
The Brazilian industry is made up of 14 groups, with annual installed capacity of approximately 85 million tons. The leaders are the Votorantim, Hcis Service Operations Manager (Camargo Corrêa), João Santos, Lafarge and Holcim.
Valor Econômico - 10/12/2013
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