Trimet cuts primary aluminium output: Update

Updates with more information on Trimet's shift to using more aluminium scrap to compensate for lower alumina supply.

German aluminium producer Trimet has reduced operations at its smelters in response to tight global alumina supply, but has replaced the raw material with scrap to maintain aluminium product output.

The firm started to gradually reduce primary aluminium production in the autumn, but it declined to say from exactly when. Trimet has also not said what volume of scrap it has used to replace alumina.

"Trimet has temporarily reduced its production of primary aluminium by approximately 10pc as a result of a supply shortage on the alumina market. Trimet expects to resume to full capacity in early 2019," board member Thomas Reuther said.

But casting output, including P1020 ingot and other products, was unaffected as Trimet shifted to aluminium scrap. The firm will be able to meet all its delivery commitments as a result, it said.

Aluminium scrap trading has increased over the past two weeks amid stronger buying by smelters. Argus assessed Tense 2pc aluminium scrap at €950-1,000/t on 23 November, while Taint/Tabor 2pc was also assessed at €950-1,000/t.

Many European smelters were hit by the 50pc output cap at Norwegian producer Norsk Hydro's Alunorte refinery in Brazil, implemented from March this year. Alunorte produced 6.4mn t of alumina in 2017, more than any other aluminium refinery in the world.

Trimet also declined to comment on whether it will source alternative alumina supply to plug the raw material gap. The firm's German operations produced 625,000t of primary and recycled aluminium in the financial year ending on 30 June 2018. The group's output in France was 140,000t for the same period.