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Norsk Hydro cuts Alunorte output, pushing aluminum stocks to 1990 low
Aluminum prices in London climbed nearly 2% after the Alunorte refinery cut throughput by 50% due to natural gas availability disruptions, while LME inventories fell to 250,000 tons.
Norwegian aluminum producer Norsk Hydro said its Alunorte plant in Brazil cut output by 50% after disruptions to natural gas availability, a move that tightened supply for the global aluminum market, according to OilPrice.
The natural gas disruptions matter because alumina refining requires high-temperature heat and steam, which the gas provides. With insufficient steam and furnace heat, the refinery cannot maintain production lines, forcing the reduction in throughput until gas supplies normalize.
OilPrice reports that London Metal Exchange aluminum inventories fell to 250,000 tons, the lowest level since November 1990. Aluminum in London rose nearly 2% and traded at $3,373 per metric ton, while alumina futures gained 1% in Shanghai.
The article also notes Alunorte is the world largest single-site alumina refinery outside China, with annual capacity of 6.3 million metric tons, and that Hydro previously warned the annual global aluminum deficit could top 900,000 tons if trade through the Strait of Hormuz remains disrupted.
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