Brazil's aluminium industry will request the government to increase by 50% the volume of the import tax-free quota for ingot from July onward due to supply constraints and a modest demand recovery, Metal Bulletin understands.
The industry expects to have 270,000 tonnes of unwrought aluminium exempted from the 6% import tariff for a 12-month period, from the current quota of about 180,000 tonnes, according to two sources familiar with the matter. "This volume was agreed prior to the announcement of Albras' production cut, but it already considers the country's limited supply in view of the forecasted demand recovery in 2018," one source said. Brazil's aluminium association, Abal, is expected to present this proposal to the government in April. Abal declined to comment on the matter. Yesterday, Hydro's Albras smelter said that it is reducing its aluminium production by half due to alumina supply disruption - in early March, Hydro's Alunorte refinery was forced to...