Norsk Hydro's Alunorte Refinery Restarted After Gas Supply Disruptions
Norsk Hydro's Alunorte alumina refinery in northern Brazil has restarted operations after a temporary agreement restored gas supply. The plant had cut output to 50% capacity earlier this week due to concerns over gas supply disruptions from CELBA, the main supplier.
The incident is expected to reduce output by 100,000-120,000 metric tons and cost Norsk Hydro between $75 million-$100 million in lost production and additional gas costs. The refinery's shutdown adds to existing tightness in the market, with low inventories in London Metal Exchange warehouses.
Norsk Hydro is seeking to mitigate future disruptions by importing gas directly through Brazil's oil regulator. This move would diversify suppliers and routes but also increase exposure to spot gas and liquefied natural gas prices.