Cement demand in Latin America bullish in the first half of 2021
Cement demand in Latin America remained bullish in the first half of the year, according to CW Research's Cement Country Market Data.
By: CW Group
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.
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.
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.
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. Find out more about Cement Country Market Data here (https://www.cwgrp.com/
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