BNamericas cited Mr Mauro Moreno economy and statistics coordinator of Abal as saying that the growth in domestic demand for aluminum in Brazil has exceeded national aluminum association Abal's initial estimates, forcing an upward revision for total aluminum consumption in 2010.

Aluminum consumption in Brazil is expected to increase 24.7% to 1.26 million tonnes this year compared to 1.01 million tonnes in 2009. Abal had previously projected 21% growth to 1.2 million tonnes in 2010.

Mr Moreno said that the revised forecast is in line with projections for GDP. Brazil's GDP growth was estimated at 5% to 6% earlier this year but now the government is talking about an improvement of 7.3%.

According to Abal, In the Q1, aluminum consumption reached a record figure of 298,800t up 32.3% YoY. In the canning industry, for example, companies are already operating at full capacity and are having to import cans to supply clients. The canning and aluminum packaging sectors considerably contributed to the figures in Q1, but several other markets are also driving growth, such as sheets and structural shapes.

Mr Moreno said that the 46% growth in sheets consumption in the Q1 is outstanding. But we also have to take into account that the same quarter in 2009 was terrible. Since then, aluminum consumption has consistently improved every quarter and the sector has now recovered from 2009 losses and is returning to growth.

He said that in all markets, we are looking at growth compared with last year. In addition, there will be an improvement on 2008 which was a remarkable year for the industry.

(Sourced from Business News Americas)