Brazil’s already struggling aluminum industry will have to endure energy-related plant shutdowns later this year, Bloomberg News reported today.
Brazilian aluminum companies are already producing at the lowest level in 12 years amid higher power costs. A drought is expected to curb hydroelectric generation in the country.
Rationing is “almost certain” within a year, Tito Martins Jr., chairman of the Brazilian Aluminum Association, which represents companies in the eighth-largest aluminum-producing nation, told a conference in Sao Paulo today.
The cash price of primary aluminum saw the biggest upwards shift for the day, rising 1.2 percent on the LME to close at $1,730 per metric ton on Tuesday, April 1. On the LME, the 3-month price of aluminum inched up 1.2 percent to $1,773 per metric ton. The Indian aluminum cash price ended a two-day climb, settling at INR 107.20 ($1.78) per kilogram.
Chinese aluminum prices were mixed for the day. After a 0.6 percent increase, the Chinese aluminum cash price finished the day at CNY 12,660 ($2,036) per metric ton. The price of Chinese aluminum scrap saw essentially no change for the fifth day in a row, remaining around CNY 12,250 ($1,970) per metric ton. For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,186) per metric ton. The price of Chinese aluminum bar saw little movement at CNY 14,200 ($2,284) per metric ton.