ONESTONE CONSULTING S.L.

New developments in Brazil’s cement industry

IMF

1 GDP growth of Brazil and other economies (IMF)

IMF

BrazilCounsel

2 Preliminary investment forecast PAC 2

BrazilCounsel

CBIC

3 Real estate financing

CBIC

SNIC

4 Cement production development

SNIC

5 Cement consumption development

SNIC

6 Imports and Exports over time

SNIC

7 Development of cement types

SNIC

8 Regional dispatch by TOP Producers (2012)

SNIC

Votorantim

9 Rio Branco do Sul cement plant

Votorantim

10 Cuiaba cement plant

Votorantim

InterCement

11 Campo Formoso cement plant

InterCement

Lafarge

12 Argos cement plant

Lafarge

Cimentos Itambé

13 Balsa Nova cement plant

Cimentos Itambé

Cimento Tupi

14 Pedra do Sina cement plant

Cimento Tupi

OneStone Research

15 Cement capacity additions

OneStone Research

16 Outlook of cement production

OneStone Research

17 Projected capacity utilisation

OneStone Research

Votorantim

Cimesa cement plant

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...