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| Alumar |
Increasing imports reshape Brazil’s aluminium market dynamics
Brazil’s aluminium industry is experiencing growing international competition, driven largely by increased imports and shifting global trade flows. According to Alumar, a leading Brazilian producer, many foreign aluminium exporters are now targeting the Brazilian market. Vedanta, India’s largest aluminium producer, has notably increased its sales volumes in Brazil, intensifying competition. Meanwhile, Russia’s Rusal reportedly plans to enter the Brazilian market, although import volumes depend on price competitiveness.
US import tariffs on aluminium, implemented in March 2025, have contributed to this shift by redirecting global aluminium exports. As a result, aluminium imports into Brazil rose from 246,832 tonnes in January-July 2024 to 263,210 tonnes in the same period of 2025, reflecting the redistribution of trade flows away from the US.
Brazilian producers prioritize domestic market amid tariff impacts
Leading Brazilian producers, including Companhia Brasileira de Alumínio (CBA), Alumar, and Albras, continue to focus on domestic demand. CBA reports that over 90% of its sales serve the local market, minimizing tariff-related disruptions. Similarly, Albras and Alumar emphasize their strategic commitment to Brazil’s growing domestic aluminium consumption. Alumar’s smelter in Maranhão is near full capacity and aims to increase production primarily for local demand.
US tariffs have led to a 25% decline in Brazilian aluminium exports to the US in the first half of 2025, with estimated losses reaching $210 million this year. Despite these challenges, Brazilian producers maintain a stable domestic supply, supporting local industries amid global market uncertainties.
Price trends reflect tariff effects and market adjustments
Since the US tariffs took effect, premiums for imported aluminium extrusion billets in Brazil have declined significantly. The premium for 6063 & 6060 extrusion billets dropped to its lowest level since late 2024. Premiums for P1020A aluminium showed mixed movements, with decreases in high-VAT markets and relative stability in low-VAT markets.
To better capture local market dynamics, a new premium for Brazilian domestic aluminium billet was introduced in August 2025, assessed at $470-530 per tonne. These price trends highlight the ongoing adjustments in Brazil’s aluminium sector as it adapts to shifting international trade conditions and tariff pressures.
ScrapInsight Commentary
Brazil’s aluminium industry faces intensified global competition due to US tariffs redirecting exports and imports. Domestic producers focus on local demand to mitigate tariff impacts, but price pressures persist. Future market stability will depend on tariff policies and the ability of Brazilian smelters to optimize capacity and supply chains.
