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Brazil's aluminum output to slip below 1 million mt for first time since 1990
industry news

Author: Paul Ploumis08 Dec 2014 Last updated at 02:39:28 GMT

SAO PAULO (Scrap Monster): According to recent forecast by the Brazilian Aluminum Association (Abal), the country’s aluminum production this year is likely to drop below 1 million mt for the first time since 1990. The yearly output is estimated to total around 978,000 mt in 2014, nearly 25% lower when compared with the 2013 output. Brazil’s aluminum production had totaled 1.30 million mt during last year.

As per the association data, Brazil’s primary aluminum production during the initial ten-month period from January to October this year totaled 821,800 mt. During the same period last year, it had crossed. The huge drop in output is primarily attributed to large number of smelters going offline during the period, unable to withstand the rising energy costs. The idled facilities are not expected to return online soon. Hence the primary aluminum output is expected to drop further during next year.

The country’s primary aluminum exports too are likely to witness 25% drop in 2014. The total exports are estimated to total around 318,000 mt when compared with 420,000 mt during 2013.

On the other hand, primary aluminum imports by the country are likely to rise nearly four-fold from 104,100 mt during 2013 to 384,000mt during this year.

Further the association predicts decline in consumption of finished products by Brazil during 2014. The consumption may see a decline of nearly 4% to 1.45 million mt during this year when compared with 1.51 million mt in 2013.

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