Steel Guru
High power costs hindering investment in primary aluminum sector in Brazil - Abal
Edited by : AL CIRCLE
2 min read
BNamericas cited Mr Adjarma Azevedo national aluminum association CEO of Abal as saying that Brazil's primary aluminum production is not seeing any investment due to high power costs.
Mr Azevedo said that "Energy in Brazil is the third most expensive in the world, behind only China and Germany. The average cost of electricity in the world is USD 40 per MWH. If we remove China from the equation the average cost drops to USD 28 per MWH.
He said that "In Brazil the cost rises to about USD 58 per MWH for companies that produce their own energy. Now, if you're buying energy from the government or other producers, the cost in Brazil rises to USD 80 per MWH. These prices are not compatible with investment.”
Mr Azevedo said that the average cost of energy for primary aluminum production in the world is around USD 409 per tonne. In China this rises to about USD 620 per tonne. In Brazil, we have an unbelievable cost of USD 1,199 per tonne.
He said that primary aluminum output fell 6.2% to 1.44 million tonnes in 2011 and Abal is forecasting production of 1.45 million tonnes in 2012. In 2008 output was 1.66 million tonnes. The decline is mainly the result of energy costs.
Mr Azevedo said that "Energy in Brazil is the third most expensive in the world, behind only China and Germany. The average cost of electricity in the world is USD 40 per MWH. If we remove China from the equation the average cost drops to USD 28 per MWH.
He said that "In Brazil the cost rises to about USD 58 per MWH for companies that produce their own energy. Now, if you're buying energy from the government or other producers, the cost in Brazil rises to USD 80 per MWH. These prices are not compatible with investment.”
Mr Azevedo said that the average cost of energy for primary aluminum production in the world is around USD 409 per tonne. In China this rises to about USD 620 per tonne. In Brazil, we have an unbelievable cost of USD 1,199 per tonne.
He said that primary aluminum output fell 6.2% to 1.44 million tonnes in 2011 and Abal is forecasting production of 1.45 million tonnes in 2012. In 2008 output was 1.66 million tonnes. The decline is mainly the result of energy costs.
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