Norsk Hydro: in the automotive industry is expected to increase demand for aluminium
The largest aluminum company foresees increasing demand for lightweight metal. In particular, the Norwegian company Norsk Hydro is going to invest in a new project at least 180 million USD (130 million EURO). Given the expected growth in demand for aluminium, Norsk Hydro plans to build a new plant in Germany to produce automotive sheet. The company also expects to invest 45 million EURO in the project on the construction enterprises in Germany, the processing of aluminum scrap. The American company Alcoa, a major supplier of metal for the automotive industry, also hoped that the demand for aluminium in the automotive sector will increase.
Such insights company Norsk Hydro is doing on the basis that since the beginning of 2014 compared to the last quarter of last year increased demand for cars of a class «premium» also on the growth of demand is affected by seasonal factors. Until recently, the situation in the aluminium market was in a deplorable condition: the income of producers has decreased significantly, as the generated power, is influenced by a number of factors. The cost of a light metal in comparison with 2008, which was the peak production decreased almost twofold — the impact of global overproduction, and the decline in demand, and considerable stocks in the warehouses of the London stock exchange. However, it is now planned to improve the situation, because outside of China the demand for the light metal remains above the suggestions on what to do bet a large aluminum company.
Despite the fall in operating profit for the first quarter of 2014 by 28%, the company Norsk Hydro is counting on the forecasts of analysts, who believe that aluminum demand in 2014 will grow by 2−4%.
In General, the global aluminum production in March increased by 42 t tons compared to the previous month, as reported by the International Aluminum Institute. In General, stocks of aluminium at the end of the first quarter amounted to 2,225 million tons, while in February this number was 2,183 million tons, Analysts are hoping for improvement, hoping that the restriction of supply and increase in demand for the metal aluminum market shifted toward the deficit, forecasting a figure in the 586 T. tons, whereas last year the excess amounted to more than 1 million tons.
The American company Alcoa implies an increase in global demand for aluminium by 7% compared to last year. Respectively, formed a shortage of proposals, which will automatically increase the cost of the «winged» metal.