Norsk Hydro: Alumina Index Accepted More Quickly Than Expected

LONDON -(Dow Jones)- Acceptance of the new index-based method for pricing alumina has been speedier than anticipated, a senior executive at Norsk Hydro ASA (NHY.OS) said Wednesday.

Simon Storesund told Dow Jones Newswires in an interview that the company, which has between 3 million and 4 million metric tons of alumina to sell outside its own consumption needs, has seen strong interest from buyers for 2012 and has conducted a number of deals based on the new system.

The world's largest aluminum producers, which have surplus alumina to sell, have been strong proponents of the move to link pricing to costs. These also include U.S.-based Alcoa Inc (AA) and London-listed Rio Tinto PLC's (RTP) subsidiary, Rio Tinto Alcan. Previously, alumina contracts were priced relative to the aluminum price on the London Metal Exchange.