News of the full closure of Norsk Hydro’s Alunorte alumina refinery in Brazil earlier this week spurred a 4.5% spike in the three-month aluminium price, pushing it to an intraday high of $2,267 per tonne, its highest level since June.
Meanwhile, with the closure coming amid a state-sponsored environmental crackdown, the alumina industry remains cautious while it awaits the Brazilian government’s next move
, with the alumina market rallying as a result.
Volumes traded also remain higher, with 22,157 lots changing hands by the close, which was still far from the yearly high of 42,936 lots on April 19.
“I think we’re seeing some profit-taking coming in. There is some scepticism about whether [Alunorte] will stay shut for too long, with upcoming elections in Brazil clouding the short-term picture. With the economy in a weak state, the government wants workers to be in jobs, for...