The benchmark alumina price will remain steady around $280 per tonne at the end of the week despite Hydro's announcement late on Thursday December 19 that it has reduced production at its Alunorte alumina refinery to 50-70% capacity, market sources told Fastmarkets.
Hydro reduced production at its Alunorte refinery in Brazil on Thursday after a fallen transmission tower cut power to the producer's bauxite mine in Paragominas, Brazil.
Alumina prices soared to all-time highs of $707.75 per tonne in April 2018 when the same refinery was ordered to cut operations to 50% of its annual capacity between March 2018 and May 2019 on environmental grounds. But market sources do not view this much shorter curtailment as bullish for alumina prices.
"Alumina prices remain very stagnant at the moment, we have been between $275-280 per tonne for quite a while and I don't think anything will change until the New Year - this news hasn't even stoked slight bullishness," a trader said.