Mitsui increases stake in Brazil’s aluminum market

Japanese trading house Mitsui has raised its share in Nippon Amazon Aluminium (NAAC) to expand its offtake of low-carbon aluminum ingots produced in Brazil, as part of its strategy to bolster its decarbonization and metals businesses. Mitsui increased its stake in NAAC, which holds a share in Brazilian aluminum refiner Aluminio Brasileiro (Albras), from 21% to 46% for an undisclosed sum. This move will elevate Mitsui's offtake of Albras' aluminum ingots to 140,000 tons per year, up from the current 80,000 tons per year.

Mitsui intends to channel the increased offtake primarily to Japanese consumers, having already delivered Albras' low-carbon aluminum ingots mainly to the Japanese market.

NAAC owns a 49% stake in Albras, which produces 450,000 tons of aluminum ingots annually. The company reduces carbon dioxide emissions in its production process by utilizing renewable energy sources.

With the growing global demand for lightweight, recyclable aluminum produced with renewable energy, Mitsui anticipates increased demand driven by the accelerating trend toward decarbonization and aluminum needs across various industries, including automotive, aerospace, construction, packaging, and electrical wiring. The company also foresees a continued supply tightness for low-carbon aluminum.

In a related move, Mitsui has invested in India-based scrap metals trader and manufacturer MTC Group, aiming to capitalize on the rising metal demand in India.