ONESTONE CONSULTING S.L.

New developments in Brazil’s cement industry

IMF

BrazilCounsel

CBIC

SNIC

Votorantim

InterCement

Lafarge

Cimentos Itambé

Cimento Tupi

OneStone Research

Votorantim

The growth in demand for cement in Brazil exceeds economic growth, although the rate at which it is growing has lost momentum. However, cement producers are investing heavily in new capacity. This market review highlights the latest developments.

1 Introduction

Over the last decade income inequality in Brazil has dropped significantly. An estimated 40 million people were pulled out of poverty. Fast growth of the middle class now drives private consumption. At about 5 % the unemployment rate is at record lows and real wages are still rising. However, inflation is still almost 6 % in spite of Brazil’s Central Bank (BCB) raising the interest rate from 7.5 % to 10.75 % since May last year. The Real, the local currency, has lost 17 % against the US Dollar since May and the BRL/USD exchange rate is now 2.36. External and fiscal accounts have...

TEXT Dr. Joachim Harder, OneStone Consulting S.L., Barcelona/Spain

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