SMM Aluminum Spot Price Falls, Billet Processing Fees Rise

[SMM Aluminum Express News] Norsk Hydro expects up to US$110 million Q4 cost impact from gas supply disruptions at Brazil's Alunorte alumina refinery. Norsk Hydro announced on October 5 that its 6.3 million mt/year Alunorte refinery continues to purchase natural gas at spot-market prices following disruptions to contracted deliveries from supplier CELBA in August. The company estimates a US$90–110 million cost impact in Q4 2026, following an estimated US$75–100 million impact in Q3 from higher gas costs and reduced alumina production. Alunorte temporarily reduced production to 50% in August, resulting in an estimated 100,000–120,000 mt of lost alumina output, before beginning to ramp up following a temporary gas terminal access agreement. Hydro does not currently expect further gas supply interruptions, although a long-term solution remains unresolved. The disruption therefore presents a continuing production-cost risk rather than a confirmed new reduction in alumina output, with potential implications for global alumina supply if gas availability deteriorates again.

[SMM Aluminum Express News] Novelis produces first aluminum coil at US$5 billion Alabama rolling and recycling plant. Novelis, a subsidiary of Hindalco Industries, announced on October 7 that it had produced its first coil on the cold mill at its new aluminum rolling and recycling facility in Bay Minette, Alabama, marking a major commissioning milestone. The facility, the first fully integrated aluminum recycling and rolling plant built in the US in over 40 years, will have 600,000 mt/year of rolled aluminum capacity once fully operational, supplying the beverage packaging, automotive and specialty products sectors.