Wednesday, August 02, 2017

Ceramic tile sector begins to show signs of resumption

Sao Paulo-the ceramic tile industry is coming back to grow in Brazil. For 2017, the sector is projected an increase of 3.8% of shy, pulled by retail. However, the record achieved in 2014 should not return in the short and medium term.
"The fall in the market was very strong. We will take two to three years to return to the level of 2014, "the DCI the Superintendent of the National Association of manufacturers, ceramic coatings, Sanitaryware and Congeners (Anfacer), Antonio Carlos Kieling.
The Manager account that Brazil is the second largest producer and second largest consumer market of ceramic tiles, second only to China. "The brazilian industry is very competitive in this segment. We have a productivity above the Chinese, but the cost Brazil us still gets in the way ".
In 2016, the sector produced 790 million square meters (m ²) and, this year, the Anfacer designs a 820 million volume of m ². "If we didn''t have the political crisis, the market would have incorporated more consistent".
The industry''s record was achieved in 2014, when m ² 905 million were produced. "The following year, the sector began to feel the effects of the crisis. Primarily the postings of the builders began to stagnate, "reports.
Currently, the ceramic tile industry operates at a capacity of around 73%. "Historically we operate above 85%," notes Kieling. With about of 85 companies, the industry has an estimated revenue of just over R $9 billion and has been betting on exports to maintain full lines.
"Despite the weak base, our shipments grew 23 percent last year," punctuates Kieling. With this performance, sales of coatings industry had a total drop of 10.4% compared to 2015. Excluding exports, retraction rises to 13.5%.
"The shipments are propping up the industry and already represent an important sales channel, corresponding to about 12% of production", adds the Manager.
He points out that the local industry has exported to 103 countries last year. "This demonstrates our competitiveness."
Kieling ensures that manufacturers have done everything we can to avoid layoffs. "Our industry had to adapt to demand. But companies are able to pass through the crisis with the least possible cuts, "says.
Weak market
According to the Brazilian Association of the industry of building materials (Abramat), the finishing segment-which includes products used in the last phase of the work-is increasing the participation front your source materials. "The market reforms, known as '' Ant '', sales of finished products remain warm, despite the crisis, albeit in a lesser intensity," says the President of Abramat, Walter Cover.
According to the leader, in the first half of this year sales of basic material retreated 7.6 percent compared to the same period in 2016. Already the finishing segment had 6.3% drop on the same basis of comparison.
"Last year, there was still a wake of releases from the construction companies. In the first half of 2017, this market accumulates a fall of about 15 percent, "says the President of Abramat.
At the same time, the retail market grows approximately of 3%. "The reforms are slightly better performance," he adds.
In this scenario, the market of coatings can be less. "Everybody needs a reform here or there. The decision to invest or not will depend on the economic situation of the family and of confidence in the economy, "points out Cover.
For the Superintendent of the Anfacer, the resumption of the economy is the most important factor for the recovery of the ceramic tile sector. "The door inside, we did the homework. Now is wait for the resumption of GDP [gross domestic Product], "says Kieling.
And while Brazil does not show stronger results in the economy, the Chairman notes that companies should keep the current strategy. "The industry will continue if supporting exports and waiting a bit more retail," says Kieling.
DCI – 1/08/2017 News Item translated automatically
Click HERE to see original
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