ZHENGZHOU ALUMINA & BAUXITE CONF: Global alumina price bullishness hit by Alunorte progress - sources

Recent optimism for an uptrend in global alumina prices has been knocked by the news that the Federal Court in Belém, Brazil, has removed a production embargo on Norsk Hydro’s Alunorte alumina refinery, sources told Fastmarkets on the sidelines of the Alumina & Bauxite conference in Zhengzhou, China on May 16-17.

This is the first of two production embargoes that need to be removed but sources note this is a positive signal that Alunorte could soon resume fully production. Alunorte has capacity to produce 6.4 million tonnes per year of alumina, 10% of alumina capacity outside of China. The additional alumina supply from Alunorte could cap an uptrend in seaborne alumina prices and may cause prices to fall later. “Apparently, they are closer to come back fully and we estimate all embargoes on Hydro will be removed around June or July,” an alumina trader told Fastmarkets on the sidelines of the conference. The development at the biggest alumina producer in the world has dented positive sentiment from earlier this week when most Chinese market participants saw the...

Published

Hui Li

May 16, 2019

16:57 GMT

Zhengzhou