Brazil: Cement sales were 5.30Mt in January 2026, up by 1% year-on-year and 8% higher than in December 2025, according to preliminary industry data from SNIC. Average daily sales reached 0.22Mt, representing a 3% increase compared with January 2025. Consumption was affected by heavy rainfall in the South and Southeast regions. The sector was supported by a strong labour market, with unemployment at 5% (the lowest level since 2012) and average income rising from US$651 to US$688. Construction confidence reached its highest level since March 2025, driven by infrastructure investment, record activity under the Minha Casa, Minha Vida housing programme and new financing rules.
However, the industry continues to face challenges, including the Selic interest rate at 15%, high household indebtedness and a labour shortage in construction. Despite these pressures, the outlook for 2026 remains ‘resilient’, supported by expectations of lower interest rates, moderating inflation and continued infrastructure and housing investment.
Paulo Camillo Penna, president of SNIC, said the sector had started the year with improved confidence but noted that high interest rates remain a constraint on mortgage lending and consumption.
“We started 2026 with the construction industry's confidence at its best point in the last 10 months. The resilient job market and rising incomes form a solid base, but we still face the challenge of interest rates at 15%, which penalise medium and high-end mortgage lending and household consumption. Our expectation rests on the start of the Selic interest rate cut cycle scheduled for March 2026 and the continuation of investments in infrastructure and the Minha Casa, Minha Vida program, which remain major drivers of cement consumption in the country. Inflation converging towards the target and a more stable exchange rate could also become important allies for the sector in the coming months," said Paulo Camillo Penna, president of SNIC.
