Nalco Expects Uptick in Alumina Prices and 16 Shipments in Q4
Since, the world’s largest alumina refinery in Brazil was ordered to shut down so the Global alumina prices have surged up by nearly USD 50 per tonne or 13 percent to USD 424/tonne overnight.
Even though the refinery has total capacity of 6.3 MTPA yet the Brazilian authorities had ordered shutdown in February. This was ordered on account of water leakage.
However, this decision could lead to scarcity of alumina. Also if one is looking to play the domestic alumina story, they could look at Nalco.
The CMD of Nalco, TK Chand has stated that the last two alumina shipments were at higher prices. It is expected that the prices could go up further from current levels. He also told that the current prices are at USD 390/tonne against USD 355/tonne at start of the month.
He went on saying that if the shortage continues, the prices could increase by another USD 30-40 tonne. The Brazilian company Norsk Hydro has purchased three shipments from the company.
At present the production for the company is at full swing and they do not keep too much inventory.
The company is of the view of making 14 shipments in the fourth quarter as compared to 8 shipments made in third quarter.