Hydro Says Aluminum Demand Still 'Weak,' Prices Will Stay 'Low'

LONDON, July 23 -- Norsk Hydro ASA, Europe's third- largest aluminum producer, said demand for the metal used in construction and transport is still "weak" and prices will likely remain "low."

    Global demand excluding China may shrink by 15 to 20 percent this year, from consumption of 25 million metric tons last year, the company said in a statement today.

    "There continues to be considerable uncertainty regarding timing of any significant recovery," Oslo-based Hydro said. "The underlying demand for metal products (extrusion ingot, sheet ingot, foundry alloys and wire rod) in Europe and North America has remained weak during the second quarter 2009."

    Aluminum inventories in warehouses monitored by the London Metal Exchange have almost doubled to a record 4.6 million tons this year. Hydro and rival aluminum makers Alcoa Inc., Rio Tinto Group and United Co. Rusal cut production in response.

    (Source: Bloomberg)