Norsk Hydro said on Thursday its Qatalum aluminum smelter in Qatar was halting the curtailment it began last week and would maintain production at around 60% of capacity with reduced supplies of natural gas.
Qatalum, which has smelting capacity of 648,000 metric tons per year, began a controlled shutdown on March 3 after being informed that its gas supply was about to be suspended. State-owned QatarEnergy had announced a day earlier it was halting LNG production after Iranian drone attacks on its facilities.
“Following confirmation from Qatalum’s gas supplier that it will maintain supply at reduced levels, Qatalum has decided to halt further curtailment and maintain aluminum production at around 60% capacity,” Hydro said in a statement.
Benchmark three-month aluminum on the London Metal Exchange rose as much as 2.6% to $3,546.50 a ton on Thursday, the highest in almost four years. The closure of the Strait of Hormuz has left Middle East smelters, which account for around 9% of global aluminum supply, unable to make shipments.
Norwegian firm Hydro owns 50% in the Qatalum joint venture alongside Qatar Aluminum Manufacturing Co, which is 51%-owned by QatarEnergy.
“The curtailment has been carried out in a safe and controlled manner. Together with continuing operation at around 60%, this improves conditions for a future restart. It is not known when the restart will commence,” Hydro said.
“Hydro is working to mitigate the consequences of the curtailment and shipping disruptions. The safety of Qatalum employees remains the highest priority,” it added.
(By Tom Daly; Editing by Tomasz Janowski)
