Factbox: Aluminium operations shuttered due to coronavirus

Factbox: Aluminium operations shuttered due to coronavirus

Reuters  | May 06, 2020 11:15

Factbox: Aluminium operations shuttered due to coronavirus

LONDON (Reuters) - The aluminium market is expected to see a massive surplus this year as demand plummets due to the coronavirus and still growing supply.

A recent Reuters survey showed analysts on average expect the aluminium market to see a surplus of 2.6 million tonnes this year and 1.8 million tonnes in 2021.

Large amounts of capacity needs to be idled to balance the market. But many producers will not cut, partly because the cost of inputs such as electricity, carbon and alumina have tumbled, supporting their margins.

Companies that have cut aluminium output have largely done so because of lockdowns due to the new coronavirus.

April 22 -- Alcoa (NYSE:AA) announces the curtailment of the remaining 230,000 tonnes of uncompetitive smelting capacity at the Intalco smelter in Washington State as part of a portfolio review.

Full curtailment, including 49,000 metric tons of earlier-curtailed capacity, is expected to be complete by the end of July 2020.

April 17 - Rio Tinto (L:RIO) has shut down the fourth pot-line at the Tiwai Point smelter in New Zealand (NZAS) with production continuing on three lines, to comply https://www.riotinto.com/news/releases/first-quarter-production-2020 with government lockdown requirements.

Tiwai Point produced 69,000 tonnes of aluminium in Q4 2019 and 279,000 tonnes last year. Potline 4 accounts for around 10% of aluminium production at Tiwai Point.

April 14 - Norsk Hydro (OL:NHY) has pushed back the restart of idled capacity at its Husnes plant in Norway to the third quarter of this year at the earliest. Husnes has capacity to produce 190,000 tonnes of aluminium a year, it is currently producing 95,000 tonnes a year.

March 30 - Argentina's Aluar (BA:ALUA) has temporarily closed 50% of its 460,000-tonne per year Puerto Madryn https://www.batimes.com.ar/news/economy/aluminum-output-cuts-in-argentina-among-first-related-to-virus.phtml plant to comply with the government's emergency quarantine measures.

March 24 - Chinese aluminium smelters have cut their annual production capacity by up to 340,000 tonnes.

March 23 - Norsk Hydro's (OL:NHY) Primary Metal business will temporarily idle recycling operations in France and in Luxembourg. https://

© Reuters. FILE PHOTO: Alcoa aluminum plant in Alcoa, Tennessee

March 13 - Rusal delays launch of the Taishet aluminium smelter, with capacity of 428,500 tonnes a year, to the first half of 2021 from late 2020.

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.