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Key takeaways:
The Brazilian primary aluminium billet market saw competition increase throughout 2025, driven by a wider supply of material in the country.
The additional entry of imported billet reinforced this pressure in a context of stable demand.
In this more competitive environment, Fastmarkets launched its aluminium 6063 & 6060 extrusion billet premium, ddp São Paulo on August 26. The new reference helps track a market that faces ample supply and more varied negotiations.
São Paulo serves as the base for the assessment because the state hosts a large concentration of aluminium processors and manufacturers, making it a key reference area for Brazilian domestic billet demand.
The aluminium billet market is influenced mainly by the construction and industrial sectors.
“In Brazil you have roughly 60% of extruded consumption in construction and 40% in industry,” a Brazilian producer source said.
According to data from the Brazilian Chamber of the Construction Industry (CBIC), the sector is expected to grow 1.3% in 2025, a slowdown compared with 2024, when growth reached 4.3%.
Different market participants said that the high interest rate had a relevant impact on slowing down the construction sector, reducing the pace of demand for aluminium billet.
“The second half of 2025 directly reflects the effects of high interest rates. From June onward, the market slowed down. The outlook for construction is uncertain, and with plenty of material available, buyers can choose more freely,” a Brazilian trader source said.
A second Brazilian trader source said that although numerous new construction projects are under way in Brazil, aluminium materials are only incorporated during the final stages of the building process.
On the industry side, the National Confederation of Industry (CNI) projects more moderate growth in 2025 compared with 2024.
Imported aluminium billet has long been available in Brazil due to insufficient domestic production.
“Domestically, when it comes to the number of extrusion presses in Brazil, billet production is very limited. There are only a few market participants to supply a market of 220,000-230,000 tonnes,” the Brazilian producer source said.
“As a result, the market is partly supplied by imports and partly by domestic production. In Brazil, imports are always present,” the Brazilian producer source added.
But after the 50% import tariffs began in the US on June 4, global aluminium supply shifted and major producers turned their attention to Brazil due to its high consumption potential.
Brazil imported about 94,805 tonnes of alloyed unwrought aluminium from January to October 2025, up from 85,758 tonnes in the same period in 2024, according to Brazilian government data.
The category alloyed unwrought aluminium includes aluminium billets, which represent the largest share of imports within this group.
Most of these materials originated from India and Argentina. In 2025, imports from India accounted for approximately 37.4%, while those from Argentina comprised 24.2%.
The share of Russian-origin material in the Brazilian market also increased over the course of 2025. Between January and October, Russian billet accounted for around 8.8% of Brazil’s total imports.
Several market participants said that rising imports have intensified competition in a context of stable demand.
Fastmarkets covers two primary aluminium billet premiums in the Brazilian market. The first refers to imported aluminium billet priced CIF, while the second addresses DDP aluminium billet delivered within São Paulo state.
These two prices had mixed evolution throughout 2025.
The fortnightly aluminium 6063 & 6060 extrusion billet premium, cif Brazilian main ports was assessed by Fastmarkets at $310-350 per tonne on Friday November 28, down from $340-390 per tonne on January 24, showing lower premium levels throughout 2025.
Meanwhile, the fortnightly aluminium 6063 & 6060 extrusion billet premium, ddp São Paulo was assessed at $520-560 per tonne on Tuesday December 2, up from $470-530 per tonne on August 26, indicating a rise in premium levels.
Several Brazilian sources said they expect a slower pace in December, with lower activity and reduced demand for aluminium billet.
“The market is losing momentum toward the end of the year, leading to a calmer environment,” a Brazilian trader source said.
A second Brazilian trader source confirmed this situation.
“The market is static in Brazil and now that it’s December, it’s even worse. Brazil is already starting to slow down at the beginning of the month.”
Although activity in the Brazilian market has slowed, sources said it is unlikely that the aluminium billet premium will fall in the short term.
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