Norsk Hydro Foresees Muted Aluminum Demand Growth Next Year

SEATTLE (Scrap Monster): Oslo-headquartered Norsk Hydro-one of the largest aluminum companies worldwide- has predicted that aluminum demand growth is likely to weaken further in 2019. According to the company, global primary aluminum demand growth is expected to drop from 4% in 2018 to between 2% and 3% in 2019. The tariff trade wars are likely to impact the global flow of the metal, it cited.

Norsk Hydro expects primary aluminum market to report deficit during the next year, despite concerns with regards to further meltdown in global economy. It must be noted that latest market data published by the World Bureau of Metal Statistics (WBMS) suggests that global primary market recorded deficit of 206kt during the initial eight months of 2018. The market had reported a deficit of 1,175kt during the whole of 2017.

In the long term, the company maintained its earlier demand growth estimates, projecting 2%-3% annual growth in aluminum demand over the next decade or so. The semis demand is estimated to grow at 3% per annum. Also, the company predicts 3%-4% growth in recycling over the same period.

Meantime, the company did not comment on the expected date of commencement of full operations at its Alunorte alumina refinery in Brazil. The facility has been operating at 50% capacity since February this year, subsequent to ban imposed by Brazilian authorities following allegations of spills of waste water into the environment.