Reuters
UPDATE -Norsk Hydro sees demand growth slowing in 2012
Edited by : AL CIRCLE
1 min read
Norsk Hydro ASA sees growth in global aluminium demand slowing next year as a result of economic turbulence that is creating a weak market and pushing many industry players into the red.
Hydro, one of the world's top aluminium producers, said it saw demand for primary aluminium outside China rising by 3-5 percent in 2012, after total demand growth slowed to 7 percent in 2011 from a 19 percent rise a year earlier. Europe's sovereign debt crisis has curbed aluminium demand on parts of the continent and it could take some time before demand improves, the firm's Chief Executive Svein Richard Brandtzaeg said at a capital markets event on Thursday.
"In Europe, the uncertainty relating to the sovereign debt crisis has impacted our customers," he said. "It may take some time before we can see improvement in Europe."
The aluminium sector has been especially weak in the fourth quarter as customers cut inventories amid the economic turmoil.
However, Chinese producers are rumoured to have curtailed yearly production by about 1.5 million tonnes, Hydro's Head of energy and corporate business development Arvid Moss said, which could relieve some of the industry's overcapacity problems.
Hydro, one of the world's top aluminium producers, said it saw demand for primary aluminium outside China rising by 3-5 percent in 2012, after total demand growth slowed to 7 percent in 2011 from a 19 percent rise a year earlier. Europe's sovereign debt crisis has curbed aluminium demand on parts of the continent and it could take some time before demand improves, the firm's Chief Executive Svein Richard Brandtzaeg said at a capital markets event on Thursday.
"In Europe, the uncertainty relating to the sovereign debt crisis has impacted our customers," he said. "It may take some time before we can see improvement in Europe."
The aluminium sector has been especially weak in the fourth quarter as customers cut inventories amid the economic turmoil.
However, Chinese producers are rumoured to have curtailed yearly production by about 1.5 million tonnes, Hydro's Head of energy and corporate business development Arvid Moss said, which could relieve some of the industry's overcapacity problems.
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