Jamalco refinery fire break out hurls price of alumina at 6 months high
The price of alumina has escalated to its highest in almost six months after a flare-up at the Jamalco refinery in Jamaica leading to the disquiet of restricted supply.
On 20th August 2021, COMEX alumina futures AALc1, assessed free-on-board (FOB) from major producer Australia, which rose to $302.14 per tonne, up from $300.48 a tonne and the highest since 25th February 2021.
The prices of the raw material for aluminium, alumina have been shooting upwards since mid-April despite robust demand for aluminium and disruption in China due to flooding.
Noble Group Holdings, the Hong Kong-based firm, which remains as an ally with the Jamaican Government in Jamalco joint venture said: “Major fire" broke out in the powerhouse that produces power, compressed air and steam for alumina-refining operations on Sunday.”
On 23rd August 2021, the Alumina Company reported: “It has since been extinguished, with no serious injuries reported. A full assessment of the damage will be done in the coming days."
The alumina refinery has the capacity for production up to 1.4 million tonnes per year, which is refined from bauxite.
According to the International Aluminium Institute, the global alumina production in 2020 was 134.40 million tonnes.
On 24th August 2021, the Australian investment management firm Shaw and Partners said in a memo to clients: “It is expected that market participants will be focused on the possibility of a disruption to production."
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