Norsk Hydro says unclear when will resume full output at Brazil refinery | Agricultural Commodities

OSLO, July 24 (Reuters) – Aluminum producer Norsk Hydro said it was unclear when it would resume full production at its Alunorte alumina refinery in Brazil, the world's largest, as reported on-line earnings. forecasts.

Norway's Hydro was ordered in February by Alunorte, initiating a cutbacks at its proximity Albras aluminum plant and a scramble among other factories and customers for supplies.

Alunorte, which has a capacity of about 6.3 million tons of alumina per year, is now running at half of production capacity.

"The process for resolving the situation is uncertain," Svein Chief Executive Officer Richard Brandtzaeg said in a statement. Hydro said it was tested different scenarios for when it could restart full production at Alunorte.

"The earliest time for full production (is) badumed from the beginning of October 2018, and the maximum curtailment period included in the (is) ending mid-2019," it said in its second-quarter report. Added to the situation in Brazil are international sanctions against major aluminum producer Rusal of Russia, with whom Hydro has business, and the U.S. tariffs on aluminum imports. All these factors have been altered Hydro's view of the market for this year, it said on Tuesday. "We see the global primary aluminum market in a stronger deficit in 2018," Hydro said. It was said in the first quarter that "the market has moved towards a deficit".

Adjusted earnings before interest and taxes fell to 2.7 billion crowns ($ 329.16 million) in the quarter from 2.9 billion at the same time a year ago, in line with expectations for 2.7 billion in a Reuters poll of badysts.

Norsk Hydro shares are down 14 percent over the past year, while the Oslo benchmark index has climbed 22 percent over the same period.