Brazil reports a notable growth in aluminium consumption, with the power sector leading the increase at 11.5% for H1 2023. The Brazilian Aluminum Association (ABAL) stated that this rise has been largely prompted by the country’s expanding wind and solar energy capacity, which necessitates more aluminium cables and transmission lines.
Janaina Donas, ABAL’s executive president, highlighted the electricity sector as the primary driver of aluminium usage in 2023. She anticipates even further growth in this segment due to upcoming auctions scheduled for the year.
The buoyant real estate market in Brazil is another contributor. Aluminium consumption in civil construction grew by 7% in H1 2023. Meanwhile, the transportation industry, backed by a 3.7% surge in car manufacturing and a remarkable 27% growth in bus body production, also added to the metal’s rising demand. The cumulative effect is a 2.9% increase in aluminium uptake within the transport realm, as per ABAL’s figures.
Conversely, the packaging sector experienced a downturn, with a 13.8% drop in aluminium consumption in H1 2023. Notably, aluminium can production for beverages and goods declined by 4.8%. However, AL Circle’s ‘Global Aluminium Industry Outlook 2023’ predicts a 3.3% global growth for aluminium in packaging, amounting to 15.19 million tonnes.
While domestic consumption of aluminium products saw a slight drop of 3.6% year-on-year, reaching 723,800 metric tons in H1 2023, 88% of this was domestically produced. This indicates a 4.5% decrease compared to last year.
On the trade front, Brazil’s aluminium industry posted a surplus of US$1.3 billion for H1 2023. Exports stood at US$2.3 billion, marking an 8.9% growth, whereas imports were at US$1.02 billion, reflecting a decline of 12.9%.