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Overcoming the Crisis and Focusing on Domestic Production, Brazil Achieves Highest Aluminum Consumption in History and Billion-Dollar Investments Are Projected Until 2025

Published on 10/05/2022 at 20:09
fabrica de alumínio com materiais enfileirados
Contornando a crise, Brasil atinge maior consumo de alumínio da história | Foto: Canva Pro
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The Volume of Aluminum Sales Reached Over 1.5 Thousand Tons in 2021 and Made History in the National Scene

São Paulo, May 10, 2022 – The aluminum sector is hotter than ever, according to data from the Brazilian Aluminum Association (ABAL). After all, more than 1,583.9 thousand tons were sold in 2021, the highest amount since the first analysis of this market, conducted in 1972. This represents an increase of 10.9% compared to 2020 and reinforces investment expectations. CBA is the concrete proof of these numbers.

Do you know what is even more interesting? The power of national production. Of this total volume of aluminum, approximately 1,393.4 thousand tons, or 88%, were produced nationally, which represents an increase of 10.6% compared to previous years. Additionally, imports increased by 12.7%. This result reaffirms the potential of national aluminum, which goes beyond the barriers imposed by the crisis and manages to grow exponentially and sustainably.

The consumption of sheets was the major protagonist of this feat, with sales reaching the incredible mark of 800.6 thousand tons, representing an increase of 16.2% compared to the previous year. This is the result of increased activity in the packaging segment, which alone accounted for over 40% of aluminum sales volume.

Except for Aluminum Powder and Wires, All Domestic Products Experienced an Increase in Sales Volume

The sales volume of transformed aluminum products for domestic use is truly impressive. Check out the numbers:

  • Extruded: 245.8 thousand tons in 2021, 17.2% more than the previous year;
  • Cast: 157.8 thousand tons, 16.7% more than the previous year;
  • Rolled: 889.1 thousand tons, 14.9% more than the previous year;
  • Destructive: 42.9 thousand tons, 16.3% more than the previous year;
  • Others: 41.9 thousand tons, 25.1% more than the previous year.

Wires and powder showed a decline in sales volume, but it was insignificant in the overall context. Check it out:

  • Wires: 180.8 thousand tons, 15.1% less than the previous year;
  • Powder: 25.6 thousand tons, 5.2% less than the previous year;

The quarterly analysis of domestic consumption of transformed aluminum products, conducted by ABAL, brings very interesting data, indicating a great recovery of the market from the end of 2020 to the beginning of 2021. See in Chart 1 below.

Quarterly Analysis Table of Transformed Aluminum Products: Source ABAL
Quarterly Analysis Table of Transformed Aluminum Products: Source ABAL

Note that the pandemic brought a significant drop in sales volume and loss of investments, especially in the second quarter of 2020, which marked the beginning of this global catastrophe. However, the sector achieved a significant and growing recovery starting from the third quarter of 2020.

Transport Segment Leads the Surge in Percentage, But Packaging Still Shows the Highest Sales Volume

Several segments use aluminum and have experienced an increase in sales volume considering our national production. However, the transport sector saw an increase of over 25% compared to 2020. Still, the big highlight goes to the packaging sector, which reached the impressive mark of 638.7 thousand tons, a value 9.6% higher than the previous year. Check the values in Chart 2.

Regarding the performance of the main aluminum-consuming segments, as shown in Chart 2, most posted double-digit growth. The exception was Electricity, which recorded a decline of 11.3%, reflecting the reduced consumption of metal in energy transmission line projects in the country.

Market Segment Table of Transformed Aluminum Products: Source ABAL
Market Segment Table of Transformed Aluminum Products: Source ABAL

Note that the electricity sector was an exception and experienced a decline of over 11% in sales volume compared to 2020. This reflects the replacement of aluminum with other products for structuring transmission lines throughout Brazil.

The Forecast for 2022 is an Expansion of Aluminum Production Capacity and Investments to Meet New Demands

ABAL specialists are optimistic and point to an even greater increase in sales volume for 2022. It is expected an increase of 4.9%, which means a total of 1,662 thousand tons, breaking the record achieved in 2021.

To achieve this, the sector should inject approximately R$ 30 billion by 2025 for increasing infrastructure and modernization, in addition to sustainability issues. Thus, the sector will meet the new demand for sales and also generate greater autonomy in energy generation and diversify energy sources, contributing to the environmental front.

After All, Who is ABAL?

Founded in 1970, the Brazilian Aluminum Association (ABAL) is an organization that gives voice to all Brazilian segments associated with aluminum production, from bauxite suppliers to recyclers and producers of transformed aluminum. Additionally, ABAL prepares reports containing statistics of interest to the segment and to the economic growth of the country, helping to understand market needs, supply and demand, and providing greater updates for professionals.

Sabrina Moreira Paes

Moradora da Grande São Paulo, 25 anos, formada pela UFPR com MBA em marketing pela USP. Possui mestrado pela Unicamp e doutorado em andamento na USP. Profissional de marketing, Copy, SEO e Ghost Writer certificada pelas Universidades de Stanford, California, Northwestern e Toronto. Entre em contato para sugestão de pauta, divulgação de vagas de emprego ou proposta de publicidade em nosso portal. Não recebemos currículos.

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