Domestic aluminum consumption to grow 8.9%/y in 2012-25 period - Abal

Brazil's domestic aluminum consumption is forecast to rise by an average of 8.9%/y in the 2012-25 period, according to national aluminum association Abal, paper Valor Econômico reported.

The growth rate for 2011 is the same, according to Abal. The industry is expected to reach 1.42Mt of products including plates, sheets, cables, wires and extrusions.

"The domestic aluminum market is expected to grow more than 9% in 2012, keeping this average rate for the next 15 years," Abal stated, according to the report.

The figures show domestic aluminum consumption of 4.6Mt by 2025. The rise, according to Abal, will be driven by the 2014 World Cup and 2016 Olympics, and also by the country's expected economic growth.

However, to reach the projected figures the sector will require substantial investments in the period - more than 63bn reais (US$33.9bn), with the creation of 250,000 jobs - to expand the entire local aluminum transformation chain, both primary and recycled.

Abal's members also want the government to urgently discuss and launch an industrial policy to ensure global competitiveness of the country's aluminum industry.

Aluminum companies do not want the market to be flooded with imported material, according to the report.

Abal could not be reached to comment on the matter when contacted by BNamericas.