Aluminum Prices Climb To Seven-Week High After Hydro Cuts Output At Brazil Refinery
Aug 12, 2026
August 12, 2026 – Global aluminum prices rallied to a seven-week high this week after Norsk Hydro announced it had halved output at its Alunorte alumina refinery in Barcarena, Brazil, due to a natural gas supply interruption. Alunorte, with nameplate capacity of 6.3 million tonnes per year, is one of the world's largest alumina refineries; the cut removes roughly 3 million tonnes of alumina capacity from the market.
LME three-month aluminum rose about 1.4% to US$3,363/tonne, its highest since late June, while SHFE front-month aluminum traded near 24,440 yuan/tonne. LME aluminum stocks have fallen to around 255,000 tonnes, the lowest level since November 1990, adding to supply tightness.
Hydro said it is buying spot gas and seeking access to an LNG terminal, with production to ramp back up once supply normalizes. The company estimates the disruption could cost its bauxite and alumina segment US$75–100 million in the third quarter.
The cut comes as China's electrolytic aluminum run-rate sits above 98% against the country's 45-million-tonne capacity ceiling, leaving little room for incremental supply. Combined with low exchange inventories and ongoing freight uncertainty around the Strait of Hormuz, analysts expect aluminum prices to stay firm in the near term.
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