Production Cut at China Lead Mines Little Harms Concentrate TCs

[SMM Aluminum News Flash] Today, the inventory of secondary aluminum alloy ingots in China's major consumption areas decreased by 94 mt from the previous trading day to 31,300 mt.

Citi Research downgraded Norsk Hydro to “neutral” from “buy” after the company’s shares rose about 25% since February, driven by stronger aluminum prices. Citi also raised its target price from NKr105 to NKr110. Aluminum prices have climbed around 20% this year, outperforming copper’s 12% gain. Citi said Middle East geopolitical disruptions have removed about 3 million tones of aluminum production capacity from the market, supporting prices. As a result, Citi raised Hydro’s 2026 EBITDA forecast to NKr37 billion and estimated that every 10% increase in aluminum prices could add around NKr7.3 billion to group EBITDA.

The US is advancing a $450M gallium supply chain project centered on the Gramercy alumina refinery in Louisiana, which is expected to host the country’s first large-scale gallium production circuit. The project involves Atlantic Alumina and includes about $150M in Pentagon funding. As the US currently has no domestic gallium production, the Gramercy refinery has become a critical asset, though its alumina operations rely entirely on imported Jamaican bauxite. China currently controls around 98% to 99% of global low-purity gallium supply, and following export restrictions, the US is accelerating efforts to build domestic critical mineral supply chains. However, the current US gallium and rare earth supply chain remains highly dependent on a single refinery and Jamaican bauxite supply.