Chinese alumina market looks for price support from Hydro power outage

Chinese alumina market participants are closely watching Hydro’s recent power outage to see whether the incident could cause a long-term supply alumina disruption, they told Fastmarkets on Tuesday June 23.

“Although it might impact only around 100,000 tonnes of alumina supply to the world, we are still uncertain as to whether [the Paragomias bauxite mine] will be back on time, especially when the Covid-19 outbreak is so serious in Brazil now,” an alumina trader in Beijing said.
Hydro announced on Monday June 22 that production at its Paragomias bauxite mine, in the state of Pará in northern Brazil and supplier to its Alunorte alumina refinery in Barcarena via a 244-kilometer pipeline, has been temporarily halted due to a power outage.
As a result, the company has reduced alumina production at Alunorte to 50-70% of full capacity to balance bauxite inventories, leading to an estimated reduction of around 100,000 tonnes of alumina supply to the market.

The outright aluminium price on the Shanghai Futures Exchange moved up in afternoon trading on Monday, reacting to the...


Hui Li

June 23, 2020

13:18 GMT