Norsk Hydro's Alunorte cuts alumina output to 50% of capacity due to gas shortage (updated)

Norsk Hydro ASA

11/08/2026 07:15

(Adds detail, quote from statement, LME aluminium price
reaction)
    * Plant can produce 6.3 mln tons/yr of aluminium raw
material
    * LME aluminium price jumps 2% to highest since June 22

    OSLO, Aug 11 (Reuters) - Norsk Hydro  NHY.OL  said on
Tuesday its Alunorte alumina refinery in Brazil has cut output
to 50% of capacity due to a reduced supply of natural gas,
helping to send aluminium prices to a seven-week high.
 The Alunorte plant, located in the northern state of Para, has
capacity to produce 6.3 million metric tons of alumina per year.
Approximately two tons of alumina, a substance refined from
bauxite, are needed to produce one ton of aluminium metal.
The Norwegian company said it had implemented contingency
measures to mitigate the impact on operations at Alunorte after
being informed of disruptions to availability by its gas
supplier, CELBA.
 "Measures include purchasing spot gas volumes, requesting
direct access to the Barcarena LNG receiving and regasification
terminal, and temporarily reducing alumina production to 50%,"
the Norwegian company said in a statement.
 The potential financial impact in the third quarter from the
reduced production and of purchasing gas at prices above the
contract price may be $75 million to $100 million, Hydro said.
 "Alunorte will begin ramping up to full production as soon as
gas availability normalises," it added.
 Benchmark three-month aluminium  CMAL3  prices on the London
Metal Exchange, already elevated due to dwindling inventories
and disruption to supply from the war-hit Middle East, rose as
much as 2% to $3,382.50 a ton on Tuesday, the highest since June
22.  MET/L 

(Reporting by Terje Solsvik; additional reporting by Tom Daly;
Editing by Elviira Luoma and Keith Weir)
((mailto:terje.solsvik@thomsonreuters.com; +47 918 666 70;))