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Brazil may become net import of aluminum by 2014


Post Date: 31 May 2011    Viewed: 496

With aluminum consumption in Brazil to surpass Brazil’s installed capacity, Brazil may become a net importer of aluminum by 2013-2014. According to an analyst during the fourth international aluminum congress in São Paulo, this will be the case without new investments to boost domestic production.


According to the analyst, who is a consultant at IBRE-FGV, Brazil may become a net importer of aluminum for the first time since the 1960s. It was also pointed out that the domestic production of semi-finished aluminum products has grown more quickly than several economic sectors in Brazil.


However, there is a need to expand the capacity in order to supply Brazil’s demand, which is set to increase within the next few years.

It was announced in a recent news report that Brazil’s annual aluminum consumption will grow from 6.6 percent to 9.1 percent through 2020, although imports could exceed exports sooner than that.


Abal, Brazil’s national aluminum association, has forecast that Brazil’s domestic consumption will rise 21 percent in 2010 to 1.2Mt. Local consumption may reach 2Mt a year by the end of the decade, while the country’s installed capacity is only 1.6Mt a year.


According to reports, aluminum imports could increase through several forms, from aluminum sheets to finished products, such as air-conditioning equipment. Aluminum import volumes are forecast to increase by 47 percent in 2010, in comparison to last year. Exports, in contrast are forecast to drop 19.3 percent within the same time frame, according to an Abal economy and statistics coordinator.


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