Aluminium consumption in Brazil expected to hit 1.5 million tonnes by Q1 2020: Abal

Aluminium consumption in Brazil is expected to match the record levels of 2013 by the end of 2019 or the beginning of 2020, backed on better sales in the aluminium packaging industry.

According to the industry association Abal, apparent consumption will grow by some 7.5 per cent this year compared to 2018 figures and then will hit 1.5 million tonnes during the first quarter of 2020.

Abal president Milton Rego said, "We have noticed the market rapidly turning to aluminium and replacing other materials in the packaging segment."

According to him, aluminium packaging for medicines, food and beverages would expectedly sustain the industry’s growth in the coming years.

However, earlier, the growth estimate was at 10-12 per cent but now revised down to 7.5 per cent, Rego pointed out.

 "Confidence in the economy was much higher [at the beginning of the year], but the performance over the first seven months has already led us to revise our estimates. On the other hand, only a few industrial sectors are expected to grow at the same level as ours, and we expect to be able to perform just as we did in 2013, our best year," Rego was cited as saying in daily Valor Econômico.

According to Abal figures, primary aluminium production in July increased in Brazil by 6.4 per cent year on year and 12.7 per cent month on month to come in at 54,900 tonnes. But the total output in H1 2019 stood down by 14.3 per cent year on year to 349,800 tonnes. Full year output in 2018 was at 659,000 tonnes.