Norsk Hydro expects a further financial impact in the fourth quarter due to ongoing gas supply challenges at its Alunorte alumina refinery in Brazil. The company had previously cut production at Alunorte by 50% in August because of gas shortages, leading to a potential hit of $75 million to $100 million in the third quarter from lower output and purchasing more expensive spot-market gas. For the fourth quarter, Norsk Hydro projects a cost impact of between $90 million and $110 million resulting from the difference between contract and spot-based gas prices.
Alunorte, one of the world’s largest alumina refineries outside China with a capacity of 6.3 million metric tons per year, continues to manage the situation in collaboration with gas supplier Celba and relevant authorities. The company is also pursuing legal remedies to protect its contractual rights under the existing gas supply agreement. Celba is owned by New Fortress Energy, which did not respond to a request for comment.
Norsk Hydro produced 6.1 million tons of alumina in 2025. Alumina, extracted from bauxite, is primarily used as a raw material for smelting aluminum metal.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing