Lower alumina prices hit Hydro’s underlying EBIT for Bauxite & Alumina despite higher production
Hydro reports positive results for the second quarter of 2017, driven by better metal prices. However, underlying EBIT for Bauxite & Alumina decreased from the first quarter mostly attributed to lower realized alumina prices, driven by a weaker alumina index.
Higher raw material consumption also affected the results for bauxite and alumina segment. Higher alumina sales volumes contributed positively to the results. However, the current ramp-up process of the new press filter operation to separate and recycle caustic soda from red mud has caused additional operational cost at the alumina refinery.
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The Alunorte alumina refinery and the Paragominas bauxite mine had higher production in the second quarter after completing planned maintenance in the first quarter. Hydro reports a total alumina production of 1,576 thousnad tonnes for the 2nd quarter in comparison to 1,523 thousand tonnes in the 1st quarter. Bauxite production stands at 2,943 thousand tonnes against 2,400 thousnad tonnes in the 1st quarter.
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