South America aluminum output slumps in June

Production of primary aluminum in South America fell 12.0% year-on-year in June to 103,000t, the International Aluminium Institute (IAI) reported.

The figure reflects aluminum plant curtailments and shutdowns in Brazil, as the country begins to shift from a leading aluminum exporter to net importer of the metal, which could happen by year-end.

US-based aluminum producer Alcoa permanently closed its Poços de Caldas aluminum smelter in Brazil on June 30. Alcoa is one of three major aluminum producers that have announced plant curtailments and shutdowns in Brazil in recent years.

IAI's figures for South America are for Argentina, Brazil and Venezuela, the region's only producers of primary aluminum.

Global primary aluminum production totaled 4.90Mt in June, up from 4.35Mt in June 2014, IAI said.

"Global aluminium production slipped by less than 1% month-on-month in June, but still grew by over 10% year-on-year in the first half. However, output in the world ex-China fell by 2% on the month," Capital Economics senior commodities economist Caroline Bain said in a July 20 report.

"Growth in global aluminium output should slow in the second half, but we still forecast growth of 6% this year, led by expansions in China and the rest of Asia," Bain said.