Brazil
Q&A

Brazil's Abal expects improved processed aluminum performance for second half

Bnamericas Published: Thursday, October 24, 2013

Brazil's national aluminum association Abal has changed its 2013 forecast for domestic consumption of processed aluminum products to 4.1% from the previous 3.7%.

According to the association, the country produced 1.43Mt of processed aluminum products in 2012.

BNamericas spoke with Luis Carlos Loureiro Filho, the coordinator for Abal's economic and statistics committee, to gain greater insight into the trends and prospects of the industry for the second half of 2013.

BNamericas: Domestic sales of processed aluminum products grew only 1.2% during H1 compared to the same period in 2012, according to Abal. What does the association expect for H2 in terms of results?

Loureiro Filho: Abal expects an improved performance for the second half, with a forecast growth of 6.9% year-on-year. If such results hold true, consumption of processed aluminum products should total 1.486Mt by end-2013 compared with 1.428Mt in 2012.

BNamericas: According to Abal's latest available data, wires and cables dragged down the sector's results during the first half of 2013. What happened to these segments?

Loureiro Filho: Wires and cables are used primarily in the energy and construction sectors. They recorded a significant drop of 22.8% in domestic consumption during the first half.

Meanwhile, and on a positive note, sales of plates, sheets and extruded aluminum rose more than 6% in the first six months of the year.

BNamericas: Is Abal expecting stronger demand for wires and cables in H2?

Loureiro Filho: The association forecasts a 1.8% increase in consumption of aluminum wires and cables in H2, in comparison with the second half of 2012.

But even if this prediction is confirmed, the wire and cable segment should end the year on a negative note with 10.5% growth compared to 2012.

BNamericas: On the other hand, Abal is forecasting aluminum plate consumption to grow 7.6% over last year, to 574,200t. What is aluminum plate's share of Brazil's total consumption of processed aluminum?

Loureiro Filho: In H1, aluminum plates accounted for 38% of the country's total consumption of processed aluminum, reaching 272,400t.

Meanwhile, consumption of aluminum sheets is expected to increase 6.1% in 2013, year-on-year, and we're predicting extruded products to grow 7.5% in the same period. [Consumption of] aluminum castings products is forecasted to grow another 3.2% this year.

Closing our list, other aluminum products are expected to record a 4.9% rise in consumption.

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