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Norsk Hydro Sees Stable Alumina Market In First Quarter 2012
Edited by : AL CIRCLE
1 min read
The global alumina market is expected to stay fairly stable for the first quarter of 2012, Norwegian producer Norsk Hydro ASA (NHY.OS) said Thursday, with prices trading around $305 a metric ton by the end of 2011.
The producer said the ramp-up of new primary metal production capacity was a key driver of a rise in fourth quarter global demand for alumina, the key ingredient used to make aluminum, although this excludes consumption in China.
Annualized alumina production outside China amounted to about 56 million tons, Norsk Hydro said. Alumina demand in China was stable compared with the third quarter, the firm noted, while production declined.
Spot alumina prices have ranged between 15%-17% of London Metal Exchange aluminum prices during the fourth quarter. The majority of the alumina Norsk Hydro sells is linked to London Metal Exchange prices, with a one month delay.
However, Norsk Hydro said due to existing sales contracts, Hydro has limited volumes available for sale for the next few years, meaning short-term alumina market developments have limited influence on its earnings.
The producer said the ramp-up of new primary metal production capacity was a key driver of a rise in fourth quarter global demand for alumina, the key ingredient used to make aluminum, although this excludes consumption in China.
Annualized alumina production outside China amounted to about 56 million tons, Norsk Hydro said. Alumina demand in China was stable compared with the third quarter, the firm noted, while production declined.
Spot alumina prices have ranged between 15%-17% of London Metal Exchange aluminum prices during the fourth quarter. The majority of the alumina Norsk Hydro sells is linked to London Metal Exchange prices, with a one month delay.
However, Norsk Hydro said due to existing sales contracts, Hydro has limited volumes available for sale for the next few years, meaning short-term alumina market developments have limited influence on its earnings.
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