Brazilian Aluminum Association (ABAL) has revealed that aluminium consumption has improved across Brazil, driven by various industrial sectors. According to the survey, aluminium consumption in the Brazilian electricity sector grew significantly by 11.5 per cent during the first half of 2023, stimulated by the rising wind and solar energy generation capacity in the country as it drove the demand for aluminium cables and new transmission lines.
“It was the segment with the biggest increase in aluminum consumption in the semester. And, due to the new auctions that are scheduled for this year, we expect the expansion of aluminum in this sector”, said Janaina Donas, executive president of ABAL.
Thanks to the improved real estate market, the civil construction sector also boosted aluminium consumption, leading to a growth of 7 per cent in H1 2023. The transportation industry also contributed to the aluminium consumption rise in Brazil. A 3.7 per cent growth in automobile production and an impressive 27 per cent hike in the production of bus bodies led to a 2.9 per cent rise in aluminium consumption, showed ABAL.
However, some sectors, like packaging, showed negative performance, especially aluminium cans for drinks and consumer goods which dropped by 4.8 per cent. As a result, aluminium consumption in the sector decreased by 13.8 per cent in H1 2023. AL Circle’s comprehensive report ‘Global Aluminium Industry Outlook 2023’ forecasts that world aluminium demand from the packaging sector is estimated to grow by about 3.3 per cent to 15.19 million tonnes in 2023, accounting for about 16 per cent of the world’s estimated aluminium consumption.
Domestic consumption of aluminium products dropped 3.6 per cent year-on-year to reach 723,800 tonnes during the first half of 2023. Of the total, 88 per cent was produced in Brazil, indicating a 4.5 per cent reduction from the previous year.
The Brazilian aluminium industry recorded a surplus of US$1.3 billion as of H1 2023, with exports worth US$2.3 billion and imports of US$1.02 billion. Exports of aluminium and its products grew 8.9 per cent, while imports fell 12.9 per cent.
Responses
