Norsk Hydro ASA, a Norwegian aluminum and renewable energy company, announced on October 3rd that its alumina refinery Alunorte in Brazil will be shut down temporarily due to environmental disputes. The plant has been producing under at a capacity of 50% only since March.
The market analysts said that the global aluminum market will be unstable as Rusal has been sanctioned by the US, and the aluminum price might change violently due to the closure of Alunorte which will force manufacturers to find other supply.
The price of bauxite has soared by 45% roughly this year, and LME statistics also showed that aluminum stocks have dropped by more than 17% in the past 2 months.
The chairman of Indian National Aluminium Company Limited (NALCO) said that Alunorte’s suspension will lead to a global shortage of 600,000 to 700,000 tons in bauxite market, and the price was expected to go up by US$490-575/ton in the next 2-3 months.
Aluminum price to surge due to Norsk Hydro’s production suspension
4 Oct 2018 14:02 reported by Joy Liu
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