UNITED KINGDOM July 21 2016 3:36 PM

LONDON (Scrap Register): Global aluminium demand likely to increase 4-5 percent from 3-4 percent earlier view. Norsk Hydro also estimated that the higher-than-expected activity in China alone will see a growth of 5-7 percent in 2016.

One of the world's largest aluminium producers, Norsk Hydro has raised its 2016 forecast for aluminium global demand. Norsk Hydro reported an underlying operating profit of 1.62 billion Norwegian crowns ($190.73 million), down from 2.67 billion in the year-ago period, beating forecasts for 1.42 billion crowns.

For years Norsk Hydro has been facing a challenging market as the Aluminium prices has been low due to concerns about oversupply and a Chinese economic slowdown. But prices have recovered somewhat recently: the LME benchmark three-month aluminium is up to a two-month high of $1,628.