BAUXITE & ALUMINA CONF: Hydro’s Alunorte alumina production cut, force majeure point to short-term Atlantic premium

The Atlantic alumina market will swing back to a premium over the Pacific as a result of a 50% cut to output, and subsequent force majeure announcement, from Hydro’s Alunorte refinery in Brazil, according to market participants spoken to by Metal Bulletin.

The tightness resultant from the cut to Hydro’s production will be sufficient to see alumina trade at a premium in the Atlantic, while absolute prices also rise, in the short term, sources said on the sidelines of Metal Bulletin’s 24th Bauxite and Alumina conference in Montego Bay, Jamaica.
“You’re now looking at least at a premium to Australia if trying to buy Brazilian or Atlantic alumina in the spot market, if not a relatively firm one,” a trader source said.
Metal Bulletin’s fob Brazil alumina index, calculated as a differential to the fob Australia benchmark, settled at a discount of $1.35 per tonne on Thursday March 1, compared with a premium of $1.39 per tonne a fortnight earlier.

The premium was calculated as high as $9.55 per...


Charlotte Radford

March 05, 2018

02:27 GMT

Montego Bay, Jamaica