Brazil’s primary aluminium output falls by 31.4%

The primary aluminium output in Brazil in November has fallen by 31.4% year-on-year once again proving that the major players in the industry are taking deliberate steps to curtail production.

Compared to the 101,000 tonnes of the metal produced in November, 2013, last month the production was a total of 69,300 tonnes according to the figures released by Abal, the aluminium association showed.

From the beginning of the year till November this year, the Brazilian production was 891,200 tonnes dipping 25.7% from last year’s production of 1.2 million tonnes across the same period. By the end of the year the total output is likely to be 978,000 tonnes, falling 25%, according to latest Abal estimate.

The difference between 2013 and 2014 total aluminium out put is 326,000 tonnes making the current output the lowest the country has seen in more than two decades.

The only exception to the constant decline in aluminium production is Albras which owned partly by Norsk Hydro and partly by Japanese consortium Nippon Amazon Aluminium Corp, holding 51% and 49% stakes respectively.

Sources say the reason for the sustained productivity levels of Albras is to meet the export commitments to Japan.

The country’s trade ministry, MDIC says that till November, Brazil has imported a total of 338,619 tonnes of primary aluminium compared to 87,196 tonnes in the same period 2013.

The exports have dipped from 372,000 tonnes a year recorded in Jan-Nov, 2013 to 287,947 tonnes across the same period this year pushing the country into becoming a net importer of aluminium form a net exporter.