Key data from July 22 pricing session.
P1020A ingot delivered São Paulo region ($ per tonne)
Key drivers – Stocks held by sellers and consumers remain high in the country, limiting the need for further purchases in the short term.
– Concerns over political and economic crisis in Brazil have continued to mount, adding to the spot market paralysis.
– Expectations for Brazilian economic performance continue to deteriorate, with analysts now forecasting that the country’s GDP will shrink 1.7% this year.
– Consumption of transformed aluminium products should be stable in 2015, according to the industry association (Abal), since the increased demand from packaging sector is expected to offset the drop in other end-user markets.
Key quotes “There are not many people out there with the need and will to buy metal at the moment. The country’s [economic] situation is really concerning and we are not seeing any expectation of improvement at all.” Consumer
“We are living in a situation of very high institutional risks. The political crisis that the country is facing seems to be leaving not much room for any measures that would improve the economy. This causes the industry to be even more paralysed.” Seller
Trade log July 22
25 tonnes of ingot, delivery not included, at $460 per tonne
For previous 2015 aluminium trade logs, please click on the relevant month: January February March April May June
Click here for Metal Bulletin’s P1020A ingot delivered São Paulo region premium specifications. Click here for Metal Bulletin’s P1020A ingot sold on a cif Brazilian ports basis premium specifications (published bi-weekly).
Danielle Assalve firstname.lastname@example.org Twitter: @dassalve_MB