Alunorte Output Cut Sends Aluminum Prices to Seven-Week High

The refinery in Barcarena, Pará, relies on natural gas to power the Bayer process, which requires intense heat for digestion, steam generation, and calcination at temperatures reaching 1,832°F. Without stable fuel supplies, the facility—which boasts an annual capacity of 6.3 million metric tons—cannot maintain the necessary throughput to sustain its lines. Norsk Hydro expects to restore full capacity once energy flows normalize, but the timing remains uncertain.

This supply shock arrives as London Metal Exchange inventories have dwindled to 250,000 tons, the lowest level recorded since November 1990. The scarcity coincides with broader volatility in industrial metals, where copper futures have climbed above $14,000 per ton amid fears of trade tariffs and persistent logistical bottlenecks. UniCredit SpA strategist Thomas Strobel noted that while copper faces structural supply constraints, aluminum remains critical for grid expansion and lightweighting initiatives. With global aluminum deficits potentially exceeding 900,000 tons should shipping disruptions near the Strait of Hormuz persist, the rising cost of these raw materials threatens to inflate the price of global electrification and decarbonization projects.