Brazilian aluminum producer CBA expands investment bet on continued tight global aluminum supply

Global aluminium prices have soared to a more than 10-year high this year, with global demand for aluminium rebounding sharply in the post-epidemic era, from beer cans to aircraft parts. Against this backdrop, CBA Alumi í nio, a big Brazilian aluminium producer, plans to expand its investment to bet on continued tight supply and demand.

Ricardo Carvalho (Ricardo Carvalho), chief executive of Brazilian aluminum company (CBA), said recently that the company plans to invest 4 billion reais (US $748 million) over the next five years to transform and expand its business. CBA plans to upgrade its plants to reduce carbon emissions and restore some of the capacity left idle during Brazil's energy crisis in 2014.

Meanwhile, the company is looking for partners to develop a 2 billion reais aluminum project, Rondon, in the northern state of Para. The company's strategy is to export 4.5 million tons of aluminum, enabling CBA to replace Guinea's supply to customers in China and the Middle East.

"We are in dialogue with potential partners in Brazil and overseas." "it includes people who are likely to sign long-term supply contracts, or investors who have their own ideas," says Mr Carvalho. "

Demand for aluminium has been boosted by global energy transformation and decarbonization targets, but supply continues to be limited. In addition, because aluminum can reduce the weight of cars, the metal performs better than most commodities. Over the past year, international aluminum prices have risen by 44%. According to the data, more than 74% of all beer sold in the United States is packaged in aluminum cans and bottles. The bank of Montreal predicts that global aluminium consumption will grow 8.5 per cent this year to 68.2 million tons.

The global shift to clean energy will also expand demand for aluminium. Solar energy will have a significant impact on demand for aluminum, copper and zinc, and the use of all three metals in the industry will double by 2040, according to Verisk.

"Base metals are an integral part of solar power systems," said Kamil Wlazly, a research analyst at Wood Mackenzie. Typical solar panel installation requires aluminum for the front frame and a combination of aluminum and galvanized steel (zinc) for structural components. "

In addition, analysts believe that as Russia will levy a mining tax, international aluminum prices will remain high for several months.

Recently, due to the recent tightening of power restrictions on electrolytic aluminum in southwest China, electrolytic aluminum plants in Guangxi province have been required to reduce their electricity load by a further 30 per cent, and all aluminum plants using Electroweb of the South have to reduce their current operating capacity by 30 per cent. Shanghai aluminum futures prices rose again this week, hitting a 13-year high.