The demand for aluminum products in Brazil has attracted the attention of foreign producers, chiefly the Chinese, who are directing their output to the country while other regions are still struggling to recover from the global economic crisis, national aluminum association Abal's economy and statistics coordinator Mauro Moreno told BNamericas.
As a result, import levels in the first half rose significantly. In value terms, imports increased 47.8% year-on-year to US$464mn in H1, according to Abal. In the whole year, the association expects imports to amount to US$932mn.
In terms of volume, Brazil imported 59,000t of manufactured aluminum products in the first half of the year compared to 30,000t in the same period of 2009. Primary aluminum imports totaled 21,000t versus 13,000t in the comparison period.
"Obviously, other countries have no obligation to Brazil's aluminum sector and they send their products here at prices that just cover costs," Moreno said, adding that when Brazil imports manufactured items, it buys added value from other regions instead of generating it domestically.
China has received large investments in its base and manufacturing industries, which consequently generated a production surplus. The only alternative is to export the surplus to regions where demand is growing, such as Brazil, according to Moreno.
Brazil currently has import duties of 12% on manufactured aluminum items and 6% on primary aluminum. However, tax incentives in certain states that promote imports end up cancelling out the duties, according to the executive.
"In order to implement anti-dumping measures, we need to prove that the industry is dying. When and if the measures are put in place, the industry will already be dead," Moreno said.
The fastest solution, according to the executive, would be for the government to provide incentives, such as a fair tax system, that would help domestic producers instead of attracting more imports.
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