Aluminum Supply Tightening as Production Slumps in Brazil
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Producing aluminum in Brazil got so expensive as electricity prices surged to records this year that Alcoa Inc. idled its Pocos de Caldas smelter and now sells the facility’s power instead of metal.
The worst drought in decades drained reservoirs used to run hydroelectric generators that supply power to extract aluminum, boosting costs already inflated by more spending on labor and transportation. Cities may be forced to ration water, and last week the government cut taxes on imported aluminum to help ease shortages as demand grows for beverage cans.