Base metals prices on the London Metal Exchange were for the most part lower during morning trading on Wednesday October 3, with the exception of aluminium, which climbed more than 3% following news of a shutdown in operations at Norsk Hydro's Alunorte alumina refinery in Brazil.
Reaching an intraday high of $2,181 per tonne, the three-month aluminium price is now trading at its highest level since June, with more than 10,000 lots traded as of 10:00am London time. Hydro announced a "full curtailment" of Alunorte alumina operations in Brazil on Wednesday, boosting sentiment for a tighter aluminium market. The producer had slowed output to 50% in March. The full effects of the temporary closure on the aluminium market are yet to be known. A trend of stock drawdowns and fresh cancelations continues across the base metals complex, while total on-warrant aluminium stocks remain at their lowest since 2007 with uncertainty over US sanctions on Russian aluminium producer UC Rusal casting a shadow over the aluminium market. "Aluminium's fundamental backdrop remains fairly positive, with global demand outstripping supply. World Bureau of Metal Statistics (WBMS) reported that the refined aluminium market was in a deficit of 302,000 tonnes in...