Alunorte Resumes Full Production After CELBA Deal

Norsk Hydro's Alunorte refinery in Brazil has resumed alumina production at full capacity after a temporary agreement was reached with gas supplier CELBA. The refinery, which can produce 6.3-million tons of alumina per year, had reduced output to 50% earlier this week due to disruptions in gas availability.

The reduction in production exacerbated concerns over global aluminium supplies, which are already strained by constricted Middle East shipments and low inventories in LME warehouses. The price of aluminium has risen to its highest level in seven weeks as a result.

The production loss is estimated to be between 100,000 to 120,000 tonnes, according to Hydro. The company has also received approval from Brazil's oil regulator to become a self-importer of gas and is pursuing a long-term solution for its gas supply.