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Global cumulative production of aluminum was up by 0.3% from January to September this year, which was the slowest rate of expansion since 2008-2009.

Albras smelter in Brazil was operating at just 50%. Norway’s Hydro has decreased output at Albras and also was operating at 50% of capacity since February due to environmental protection. Smelter outages in Canada and Brazil also operated at the lower rate.

A squeeze on availability of alumina was squeezing smelter margins because of the increasing threats of production hits. The ongoing loss of production from Alunorte was affecting the alumina market. The prices were pushing up and the operating margins for smelters was squeezed.

Alcoa will be forced to lay off workers at its Aviles and La Coruna smelters in Spain. The company was operating below 180,000-ton capacity yearly. Alcoa will reorganize its production for the third smelter in Spain which could produce both alumina and aluminum.

The Mostar smelter in Bosnia was another European smelter which will be closed down due to both increasing alumina and power prices.