Key facts
- London Metal Exchange aluminum inventories have fallen to 250,000 tons.
- The current aluminum stockpile level is the lowest since November 1990.
- Norsk Hydro's Alunorte refinery in Brazil has implemented a 50% output cut.
- The output cut at Alunorte is due to natural gas disruptions.
- Copper prices have surged above $14,000 a ton.
Aluminum inventories held by the London Metal Exchange (LME) have fallen to their lowest level since November 1990, with current stockpiles at 250,000 tons. This sharp decline in available aluminum is primarily driven by ongoing supply disruptions impacting global production. A significant factor contributing to the low inventory is a 50% output reduction at Norsk Hydro's Alunorte refinery, located in Brazil. The curtailment at Alunorte is a direct consequence of natural gas disruptions affecting the facility's operations. The tight supply situation for aluminum has occurred concurrently with a surge in copper prices, which have climbed above $14,000 per ton, indicating broader pressures within the base metals market.