Brazilian aluminum consumption is expected to grow at a
slower rate of 3.7 percent in 2013 vs. an earlier estimate of 5
percent due to slower-than-expected economic growth, Brazilian
aluminum association Abal said.
Growth in aluminum
consumption is closely linked to the countrys
macroeconomic performance, and Brazilian gross domestic product
in the first quarter increased 0.6 percent quarter on quarter
and 1.9 percent year on year. As a result, Brazils
central bank cut the countrys 2013 GDP growth projection
to 2.77 percent from 2.93 percent.
It was the third time
in a row that the government lowered its forecast.
consumption in the domestic market is expected to reach 1.48
million tonnes in 2013 compared with 1.42 million tonnes in
2012, Abal said.
consumption is forecast to rise 7.2 percent to 571,800 tonnes
this year, while demand for cast items it set to grow 5.9
percent year on year to 220,200 tonnes, Abal said. Demand for
foil and extruded products is expected to rise 4.6 percent and
4.5 percent, respectively, to 92,700 tonnes and 356,000
Demand for wire and
cable, in contrast, is expected to fall 12.1 percent to 129,800
"There is lots of
cable demand in Brazil," Luis Carlos Loureiro Filho, Abal
coordinator of economics and statistics, told AMM
sister publication Metal Bulletin. "The government has
announced a program to increase electricity access, but
its not going on the desired pace. When it happens,
however, well require about 300,000 tonnes of wire."
As for international
sales, the aluminum sector expects revenue to increase 12.6
percent this year to $4.4 billion due to a rise in alumina
revenue for the Brazilian aluminum industry stood at $941
million, down 8.1 percent year on year. Imports also fell 9.4
percent year on year to $310 million.