Brazil's primary aluminium production dropped 23.5 % YoY to 195,400 tonnes from January to April 2019

According to Abal, the aluminium industry association of Brazil, Brazil's primary aluminium output dropped 19.7% YoY to 48,400 tonnes in April 2019. This was the second smallest production volume recorded in 2019. Month-on-month, Brazil’s primary aluminium production dropped 3.6% from 50,200 tonnes in March.

According to the association, the total primary aluminium production from January to April also dropped 23.5% to 195,400 tonnes in comparison with the same period of 2018. Brazil’s full-year aluminium output for 2018 stood at 659,000 tonnes.

Brazil being the center of South America's aluminium value chain, its declining aluminium output has been impacting South American total production. Regional primary aluminium output dropped 20.4% year-on-year to 82,000 tonnes in April, according to industry data released in May.

The drop in production in April was partially attributed to 50% aluminium production cut at Albras, the largest producer of primary aluminium in Brazil partly owned by Norsk Hydro, due to falling raw material supply when Alunorte plant was forced to operate at half capacity. However, by the second half of 2019, the plant is expected to return to its full production.

Abal comprises CBA, part of local conglomerate Votorantim, as well as Alcoa, BHP, Albras and Novelis.

Ranked 10th among the world's aluminium producers, Brazil’s operating performance has been steadily falling in the upstream segment.  However, Brazil continues to remain a major player in the integrated aluminium value chain with its extensive bauxite and alumina facilities and aluminium smelters.