Financial Associated Press (Shanghai, editor Zhou Ling) news, this year's global aluminum prices soared to a high of more than 10 years, from beer cans to aircraft parts, global aluminum demand rebounded sharply in the post-epidemic era. Against this backdrop, Brazil's largest aluminium producer, CBA Alumínio, intends to expand investment to bet on continued tight aluminium supply and demand.
Ricardo Carvalho, chief executive of Alcobrai (CBA), recently said that the company plans to invest 4 billion reais ($748 million) over the next five years to overhaul and expand its business. The CBA plans to upgrade the plant to reduce carbon emissions and restore some of the capacity that was idle during Brazil's energy crisis in 2014.
Meanwhile, the company is looking for a partner to develop Rondon, a BRL 2 billion aluminium project in the northern state of Pará. The company's strategy is to export 4.5 million tonnes of aluminium, giving CBA the ability to replace Guinea's supply to customers in China and the Middle East.
"We are in dialogue with potential partners in Brazil and abroad." "This includes people who may have long-term supply contracts, or investors who have their own ideas," Carvalho said. ”
The global energy transition and national decarbonisation targets have boosted demand for aluminum, but supply continues to be constrained. In addition, because aluminum materials can reduce the weight of automobiles, this metal performs better than most commodities. Over the past year, international aluminum prices have risen by 44%.
Global demand for aluminium is strong
The data shows that more than 74 percent of all beer sold in the U.S. is packaged in aluminum cans and bottles. The Bank of Montreal (BMO) predicts that global aluminium consumption will grow by 8.5% to 68.2 million tonnes this year.
The global shift to clean energy will also expand aluminum demand. According to the Verisk report, solar energy will have a significant impact on demand for aluminum, copper and zinc, and the use of all three metals in the industry will double by 2040.
Kamil Wlazly, senior research analyst at Wood Mackenzie, said: "Base metals are an integral part of solar power generation systems. Typical solar panel installations require aluminum in the front frame and a combination of aluminum and galvanized steel (zinc) for structural components. ”
In addition, analysts believe that international aluminum prices will remain high for several months due to russia's mining tax.
Recently, due to the tightening of electrolytic aluminum curtailment in southwest China, electrolytic aluminum plants in Guangxi Province have been required to further reduce the load by 30%, and aluminum plants using China Southern Power Grid need to reduce their current operating capacity by 30%. Shanghai aluminum futures prices rose again this week, hitting a new high in nearly 13 years.
<h3>Shanghai aluminum futures trend / Ying for the financial situation</h3>