Cement demand in Latin America remained bullish in the first half of the year, according to CW Research’s Cement Country Market Data.

Year-to-date through June, cement consumption in five select countries in the region – Brazil, Colombia, Peru, Argentina, and Chile - was boosted by self-construction, robust housing sales, and the reactivation of public works.

In addition, cement demand recorded robust growth year-on-year in the period due to the very low comparison basis, as all mentioned countries suffered from Covid-19 related restrictions during the first six months of 2020.

“While in Brazil, the cement industry has been recording growth since 2020, in Argentina and Peru, Covid-19 caused a severe slump in demand, which has been reversed this year. A recovery is underway in the construction sector boosted by both private and public works,” observes Prashant Singh, Associate Director at CW Group.

 

Argentina sees cement demand posts double-digit increase in June

In Argentina, construction activity has been rising on a yearly basis since November 2020. In June alone, construction volume increased 6.8 percent month-on-month and 28.6 percent compared to June 2020.

Cement demand followed suit improving both month-on-month and year-on-year in June, posting a monthly increase of almost 10 percent and a yearly expansion of more than 20 percent. Year-to-date, demand rose over 46 percent in the first six months of the year while exports also increased over 34 percent.

In Chile, bagged cement sales continued to increase year-on-year in June, by almost 67 percent while year-to-date, bagged cement sales rose more than 20 percent compared to the first six months of 2020. The Monthly Indicator of Economic Activity (Imacec) rose almost 22 percent yearly in the rest of the goods section in June, associated with the good performance of construction.

 

Real estate and self-construction boost demand in Brazil and Peru

In Brazil, year-on-year, cement demand kept increasing in June, posting a rise close to 4 percent.

Meanwhile, year-to-date, cement demand was up by 16.7 percent. The country registered a 46.1 percent increase in sales of residential units in the first half of 2021, while self-construction and renovations (residential and commercial) also justified the high demand for cement.

In Peru, cement consumption also improved monthly and yearly in June, by almost 3 percent, and by 69 percent, respectively, driven by the activity of public works, formal residential market and the self-construction segment. Year-to-date cement demand increased by over 3 million tons or 102 percent in the first 6 months of the year, while exports rose more than 20 percent in the same period.

 

Social housing pushes cement consumption up in Colombia

Cement demand in Colombia posted a growth of more than 31 percent month-on-month and 18 percent year-on-year in June, while cement demand was up by over 34 percent year-to-date through June.

New housing sales also increased over 43 percent year-on-year in the first half of the year, driven by Social Interest Housing.

 

 

 

CW Research’s Cement Country Market Data reporting covers monthly cement volume trends across the globe. The service provides data and statistics on monthly demand and supply volumes for the largest cement producing and consuming markets around the world. Presented in an objective, easy-to-understand format, the Cement Country Market Data is an indispensable tool for producers, suppliers, traders, investors and end-users that need to quickly understand developments in the world cement markets.

Find out more about Cement Country Market Data here.

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