COVID-19 impact: World primary aluminium consumption dropped 9% YoY to 15.482 million tonnes in Q2: Hydro

Hydro said in its Q2 results report that global primary aluminium consumption in Q2 declined 9 per cent due to the coronavirus pandemic. The world consumption stood at 15.482 million tonnes in Q2 as compared to 17.01 million tonnes in Q2 2019.

In January-June, primary aluminium consumption came in at 29.203 million tonne as against 32.237 million tonnes in January-June 2019, according to Hydro’s report.

"Global primary aluminium consumption was down 9% compared to the second quarter of 2019, driven by a combination of around 28% decline in world outside China and an increase of 5% in China," Hydro said in its Q2 results report.

"The COVID-19 situation continues to cause significant market uncertainty, with global GDP and industrial production falling during the quarter, leading to a reduction in aluminium demand," Hydro said. "Although uncertainty remains high, several countries, and especially China, are showing signs of recovery towards the end of the second quarter."

Global demand for primary aluminium is expected to be weak in 2020, leading to a significant primary aluminium surplus. External sources are estimating a surplus of between 3 million tonnes and 4.7 million tonnes, with both China and the rest of the world in surplus.

Hydro's bauxite output increased 44% year on year to 2.332 million tonnes. Alumina production climbed 55% at 1.442 million tonnes.