The alumina market once again had all eyes focused on developments at Hydro's Alunorte refinery in Brazil on Wednesday August 19, and alumina prices are pushing higher again.
Hydro announced last night that it had
halted operation of the pipeline transporting bauxite from its Paragominas bauxite mine to Alunorte alumina refinery for extended maintenance.
It means production has been temporarily stopped at the mine and Alunorte's alumina production has been reduced to 35-45% of full capacity.
The maintenance work has started immediately and is expected to last two months.
Participants' opinions were mixed when dissecting the impact it would have on alumina prices in the near term.
"I don't see it soaring prices immediately. It depends on if there is a surge in people needing to buy, but the underlying demand is weak and I think there are enough spare cargoes in the market," a trader said.
"It's the largest refinery outside China, there will be a knee-jerk reaction and it will push prices up. It's understandable and if there are delays or it goes...