MELBOURNE: London aluminium prices fell as much as 4 percent on Monday after a Brazilian court approved emergency waste measures that could allow the world's biggest alumina refinery to resume production.
Norsk Hydro has been granted a permit in Brazil to use new technology to extend the life of a disposal area for its troubled Alunorte alumina refinery which should lead to the restart of 50 percent of production of the raw material for aluminium.
"China can definitely increase its exports of alumina to fill the void created by Alunorte's shutdown," said analyst Helen Lau of Argonaut Securities in Hong Kong.
"This looks like speculative selling around news flow."
Three-month aluminium on the London Metal Exchange fell as far as $2,044.50 a tonne and was down 2.8 percent at $2,069.50 by 0721 GMT, declining for a third straight session. The metal climbed to $2,267 on Thursday, the highest since June, after Norsk Hydro said it would halt production at Alunorte indefinitely.
ALUMINA: Higher alumina prices have helped lift aluminium prices. Alumina prices surged to $620 a tonne last week from $591 the week before on expectations Alunorte would be wound down until some time next year, cutting market supply.
INDIAN ALUMINIUM: Indian aluminium makers including Hindalco Industries and Vedanta Ltd are boosting sales to Japan as US sanctions against Russia's Rusal and import tariffs shake up traditional supply routes.
CHINA: China's stocks fell sharply despite Beijing's weekend announcement that it will slash the level of cash that banks must hold as reserves, a sign of underlying investor anxiety over a heated Sino-US trade war.
OTHER METALS: LME zinc dropped 2.3 percent to $2,575.50 a tonne and copper slipped 0.4 percent to $6,150.50.
CHINA RETURNS: The Shanghai Futures Exchange reopened after a week-long public holiday in China. Shanghai-traded copper ended flat at 50,010 yuan a tonne and zinc climbed 1.6 percent to 21,930 yuan. Aluminium rose 0.8 percent to settle at 14,450 yuan.
LME WEEK: Trading activity is expected to be lighter and more volatile this week with most of the metals and mining industry officials in London for the sector's biggest week of meetings, LME Week.
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