Brazil Refinery Cuts Output, Sends Aluminium Prices Soaring

Norsk Hydro ASA's Alunorte alumina refinery in Brazil has reduced its output by half due to natural gas supply disruptions, sending aluminium prices soaring to a seven-week high.

The Norwegian company implemented contingency measures to mitigate the impact on operations at Alunorte, including purchasing spot gas volumes and reducing alumina production to 50% capacity.

Indian aluminium companies NALCO, Hindalco Industries, and Vedanta Aluminium Metal have benefited from the disruption, with NALCO shares rallying by as much as 8.8% and Hindalco jumping 3.7%. Vedanta Aluminium Metal shares also rose by 2.9%.

The reduction in alumina production at Alunorte could lead to tighter global supply and higher aluminium prices, benefiting Indian producers such as NALCO, Hindalco, and Vedanta Aluminium Metal.