Norwegian aluminum producer Norsk Hydro's Alunorte plant in Brazil, one of the world's largest alumina refineries, reduced output by 50% following disruptions to natural gas availability.
Bloomberg reports that disruptions to NatGas availability at Alunorte forced a 50% reduction in output and sent aluminum prices in London to a seven-week high. Hydro said production would return to full capacity once gas supplies normalize.
Aluminum rose nearly 2% in London and traded at $3,373 a metric ton. Alumina futures gained 1% in Shanghai.
NatGas is critical to Alunorte because alumina refining requires high-temperature heat and steam. The gas powers the Bayer process, which refines bauxite:
- Digestion: Bauxite is mixed with caustic soda and heated under pressure to dissolve the aluminum-bearing minerals.
- Evaporation and steam generation: Large boilers provide steam throughout the refinery.
- Calcination: Aluminum hydroxide is heated to around 1,832F to remove water and produce smelter-grade alumina.
The disruption means that Alunorte cannot maintain enough steam and furnace heat to operate its production lines, forcing the refinery to reduce throughput. For context, Alunorte is the world's largest single-site alumina refinery and the largest outside China. It is located in Barcarena, Pará, and has an annual
