Aluminum consumption in Brazil grows 8.2% in 2019, abal reveals

The Statistical Yearbook of Aluminum 2019, published by the Brazilian Aluminum Association (ABAL), points out that, last year, the sector maintained the growth started in the previous two years, out of the national Gross Domestic Product (GDP), whose variation was only 1.1%.
The consumption of processed aluminum products increased 8.2% compared to 2018, with a volume of 1,485.6 thousand t. The sector's revenues grew by 5.3%, reaching R$ 83.6 billion.
According to Milton Rego, Ceo of ABAL, the entity and associated companies now face the biggest challenge in history: the consequences of the pandemic caused by Covid-19. This means that despite the good numbers recorded, the sector may return some houses on the growth board.
"It's hard to have to. I am sure, however, that the Brazilian aluminum industry will show its usual resilience and turn it around once again. The half century of history of ABAL is the expression of this strength", comments Milton, recalling the fiftieth anniversary of the entity celebrated in May this year.
Despite the adverse scenario found in 2020, a report prepared by the consultancy CM Group, at the request of the International Aluminium Institute (IAI), reveals that while the fall in global demand for aluminum is inevitable this year, there is still significant optimism for the next three decades. Demand is expected to reach 298 million tons per year by 2050.
"The aluminum industry, like all industrial sectors, still faces a challenging future in the short term, but there must be cause for optimism. We need everyone to navigate together in this raging sea: consumers, industry leaders, policymakers, governments and all stakeholders who contribute to generating positive change," says Miles Prosser, IAI Secretary General.
- Good performance of the plates
In the process industry, the ABAL Yearbook points out that production also maintained the high started in 2017, with growth of 6% in 2019, and volume of 1,422,000 tons.
The sheet metal segment, which represents almost half of the total aluminum market, varied positively by 11.5% in the period, driven mainly by the cans.
"The sale of aluminum beverage cans recorded a record growth of 13.7% in 2019. If we take into account that 2018 was also very positive, we conclude that this sector has been resilient in terms of results", says Guilherme Superbia, Commercial Excellence and Marketing Manager at Novelis.
Even with the uncertainties caused by the pandemic, Superbia believes that the sector may be positively surprised this year, as aluminum production was considered an essential activity.
On the other hand, the increase in food and beverage consumption within the home could boost demand for beverage cans and disposable packaging for delivery of meals." These are two factors that can help the results of the industry as a whole in 2020," he explains.
Luciano Alves, CBA's Chief Financial Officer, adds that the performance of the automotive, road implements, urban and road sectors also positively impacted the demand for aluminum plates last year." Thanks to a joint effort of all industry representatives, it is possible to note that aluminum has been perceived as a strategic metal for various segments, from a socio-environmental and qualitative perspective", he says.
- Large metal consumers
Among the sectors that use aluminum the most in Brazil, electricity recorded the highest increase (26.9%) last year. Then, packaging (8.2%), transport (4.5%), construction (4%) were and consumer goods (4.1%).
- Bauxite, alumina and primary aluminium
In 2019, the volume of bauxite fell 1.4%, closing at 31,937.9 thousand t. Alumina production performed well (11%) due to the end of the embargo on the Alunorte refinery. Primary aluminum generation remained practically stable, with a slight drop, totaling 650,000 tons against 659,000 tons in 2018.
Luciano Alves, cba, recalls that the national industry has had a strong impact, both due to the country's unfavorable macroeconomic scenario and by the import of metal, with China's leadership in global production.
"Although Brazil has one of the largest bauxite reserves in the world, the industry has been losing competitiveness over the years, due to the high cost of electricity and gas, essential inputs for the production of primary aluminum," he said.
- Trade balance
Aluminum trade balance figures show that total imports remained stable compared to the previous year, at $1.9 billion in 2019. Brazil exported slightly less, US$ 3.8 billion, against US$ 4 billion in 2018. As a result, the trade surplus decreased 11% to US$ 1.7 billion.