Brazil: The heavy rains and flooding in Rio Grande do Sul state have negatively affected cement sales in May 2024, with volumes dropping by 5.6% year-on-year to 5.3Mt, according to the National Union of the Cement Industry (SNIC). Overall sales for the first five months of 2024 reached 25.2Mt, a slight increase of 0.8%. Despite a 0.8% growth in GDP in the first quarter of 2023, the construction sector saw a 0.5% decline due to high interest rates impacting financing and investments. A positive business outlook is expected for the second half of the year, buoyed by labour market trends and wage increases.
Paulo Camillo Penna, President of SNIC, said "In support of the population affected by the severe floods and rains, cement plants in Rio Grande do Sul are fully operational to assist in reconstruction, with normalised supply of the product, which will be essential for the execution of hundreds of necessary projects throughout the state."
