Aluminum Extends Rally After Brazilian Plant Cuts Output to 50%

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessAluminum Extends Rally After Brazilian Plant Cuts Output to 50%Aluminum extended gains — and touched a seven-week high — after a key alumina producer said it was slashing production, adding to major supply-side disruptions for the metal this year.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Aluminum extended gains — and touched a seven-week high — after a key alumina producer said it was slashing production, adding to major supply-side disruptions for the metal this year.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountNorsk Hydro ASA said its Alunorte plant in Brazil had cut output to 50% of capacity after a supplier notified it of disruptions in the availability of natural gas. Alunorte is one of the world’s biggest producers of alumina, the key feedstock for aluminum smelters. The metal rose as much as 1.9% in London.Alunorte will ramp up alumina production to full capacity as soon as the availability of natural gas allows, Norsk said. CELBA, the gas supplier to the refinery, is owned by New Fortress Energy, a heavily indebted firm that’s undergoing a financial restructuring.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe aluminum market has been roiled this year by the Iran war, disrupting flows of metal from the Middle East — which accounts for about a tenth of global production — and sending prices and premiums rocketing. Though prices retreated after the intense initial weeks of the conflict, they have rebounded since the end of June, and London Metal Exchange inventories have slumped to their lowest since 1990.On Monday, President Donald Trump laid out extensive new demands on Iran, including compensation for people killed by Tehran. The conditions, which are likely to be rejected by Iran, came after the Islamic republic reiterated its own requests for reparations as part of talks to wind down the conflict.The hardening positions on both sides point to a longer grind toward a deal, dimming hopes for a normalization of aluminum supplies. The region accounted for about a tenth of global output before the war.“Negotiations in the Middle East are not proceeding smoothly, which should provide some support for aluminum prices,” said Yan Weijun, head of nonferrous metals research at Chinese trader Xiamen C&D Inc. Stockpiles of aluminum in LME warehouses have fallen steadily this year and are now near a quarter of a million tons, the lowest level since November 1990, despite new supplies from China and Indonesia.Norsk Hydro had warned last month that the annual global supply shortfall for the metal may widen to more than 900,000 tons if trade through the Hormuz wasn’t normalized.Aluminum rose 1.5% to $3,367.50 a ton on the LME as of 8:49 a.m. in London. Alumina futures closed up 1% at 2,724 yuan a ton on the Shanghai Futures Exchange.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.