Brazilian Q1 Aluminium Production Slows, Consumption Growth Continues

Brazil produced 406,800 tons of primary aluminium in the first quarter this year, representing a slowing growth of 2.1%, released country’s aluminium association ABAL. Production growth for 2007 and 2006 was respectively at 3.1% and 7.2%. CBA’s Sorocaba, recently expanding from 70,000tpy to 470,000tpy, is the major driver of the growth. The smelter is projecting a further expansion for up to 600,000tpy by 2011. In contrast, the country’s consumption growth continues the strong trend and is expected a further acceleration of this year. It is forecast that aluminium products consumption rose by 9.7% to 918,900t last year, which increases the averaged 8.4% growth over the last 5 years. However, the only major end-use product displayed negative growth was cable and wire, which fell by 13.9% to 74,700t because of deferral of investments in power transmission lines and the country’s “Lighting for All” programme. But there has been prediction that consumption in the areas will recover by growing 28% to 95,600t and overall growth of 11.9% to 1,027,900t of this year. COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.