
News of full curtailment of production at Norsk Hydro’s Alunorte alumina refinery in Brazil spurred a 4.5% spike in the three-month aluminium price, pushing it to an intraday high of US$2,267 per tonne, its highest level since June. Aluminium prices rally in LME started consolidating at the close of trading on Thursday October 4 and the three-month aluminium price closed 1.6% lower driven by a strong US dollar index. The aluminium cash contract closed at US$ 2243.50 per tonne yesterday, up from US$2166.50 per tonne on October 3.

As on October 4, LME aluminium cash (bid) price stands at US$ 2243 per tonne, LME official settlement price stands at US$ 2243.50 per tonne; 3-months bid price stands at US$ 2250 per tonne, 3-months offer price is US$ 2251 per tonne; Dec 19 bid price stands at US$ 2273 per tonne, and Dec 19 offer price stands at US$ 2278 per tonne.
The LME aluminium opening stock dropped further to 974075 tonnes. Live Warrants totalled at 605650 tonnes, and Cancelled Warrants were 368425 tonne.
LME aluminium 3-months Asian Reference Price is hovering at US$ 2245 per tonne.
The alumina industry remains cautious while awaiting the decision of Brazilian authorities. The decision has put pressure in the alumina market keeping prices high. Shares of alumina producers rose on Thursday after the announcement. Shares of Alumina Ltd rose as much as 11 per cent while South 32 gained as much as 7.3 per cent. Metro Mining rallied 5 per cent and shares of Nalco jumped 11 per cent. Though analysts are doubtful about how long Hydro Alunorte would remain shut, currently the prices remain bullish pushing the aluminium prices high.
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