September 08, 2008

Abal forecasts record aluminum usage growth in Brazil

According to forecasts from Brazilian aluminum association Abal, Brazilian aluminum consumption is due to go up an unprecedented 38% in 2008.

For 2008, Abal is projecting consumption in Brazil to hit 1.27 million tonne as compared to 919,000 tonne in 2007 and up almost 50% from the 837,600 tonnes consumed in 2006.

Mr Claudio Chaves Albal economist told BNamericas that "On the consumption side we've had four consecutive years of strong growth.” He said that the rampant growth is happening due to what he calls a repressed demand in Brazil. The population has a much stronger purchasing power than in the past due to a more robust economy.

However the economist warned that Brazil's consumption, despite growth, remains a fraction of what is consumed in developed countries.

Mr Chaves said that "We still have a long way to go citing aluminum annual consumption in developed countries of 30 kilogram per capita, versus Brazil's roughly 5.5 kilogram per capita.