Aluminum Prices Soar Amid Brazil Refinery Disruptions

Norsk Hydro's Alunorte plant in Brazil, one of the world's largest alumina refineries, has reduced its output by 50% due to disruptions to natural gas availability.

The plant uses NatGas to power the Bayer process, which refines bauxite and produces smelter-grade alumina. The disruption means that Alunorte cannot maintain enough steam and furnace heat to operate its production lines, forcing a reduction in throughput.

Aluminum prices have risen nearly 2% in London, trading at $3,373 a metric ton, while alumina futures gained 1% in Shanghai.

The lowest level of aluminum stockpiles since November 1990 has been recorded in London Metal Exchange warehouses with only 250,000 tons remaining. Norsk Hydro recently warned that the annual global aluminum deficit could top 900,000 tons if trade through the Strait of Hormuz remained disrupted.