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Alcoa suspends bauxite deliveries from Brazil's Juruti mine due to port problem

U.S. aluminium maker Alcoa stated on Thursday it had actually halted bauxite deliveries from Brazil's Juruti port due to a stranded vessel in the waterway.

This was the most recent in a series of interruptions to hit the aluminium basic material supply chain, which have pressed alumina costs to tape highs and supported aluminium costs.

Alcoa stated force majeure at its bauxite mine in the Juruti region on Wednesday as an inaccessible waterway hindered its ability to supply its customers, an Alcoa representative stated in an emailed statement to Reuters.

The statement gave no quote on when shipments would resume.

One trader source said the vessel has been stranded near Juruti port given that late October and bauxite has actually not been moving for nearly 10 days.

The Juruti area has among the world's largest deposits of high grade bauxite, which is usually crushed and improved into alumina. Alumina is the significant raw material for making primary aluminium.

Three-month benchmark prices for aluminium on the London Metal Exchange surged to a 5 month high of $2,732 per metric heap on Thursday. It last traded at $2,706 as at 1519 GMT.

Alumina costs rallied last month after interruptions to shipments in Guinea and Australia.

The most traded alumina contract for January expiration on the Shanghai Futures Exchange

(source: Reuters)