Norsk Hydro Output Cut in Brazil Sends LME Aluminum Stockpiles to 36 Year Low

Norway's Norsk Hydro said on Wednesday, August 12, 2026 (21 Mordad 1405) that it cut output by 50% at its Alunorte alumina refinery in Brazil, the world's largest single site alumina refinery and the largest outside China, following a natural gas supply disruption. According to Oilprice.com, citing Bloomberg, the disruption pushed London Metal Exchange aluminum prices to a seven week high, with aluminum up nearly 2% at $3,373 a tonne. LME warehouse inventories fell to 250,000 tonnes, the lowest level since November 1990. Norsk Hydro warned that the global annual aluminum deficit could exceed 900,000 tonnes if disruption to Strait of Hormuz shipping continues. At the same time, LME copper rose above $14,000 a tonne, as US stockpiling ahead of an expected Trump administration tariff tightened global supply. Rising base metal prices affect the profitability of export focused steel and aluminum producers on the Tehran Stock Exchange, whose pricing is tied to global benchmarks and the exchange rate.