[ad_1]
One of the largest aluminum producers in the world has announced that it is witnessing a slowdown in Germany as the automotive and construction sectors reduce their demand.
Norsk Hydro, based in Oslo, missed its expectations in the second quarter on Tuesday, after announcing a fall in its underlying profit to 875 million Norwegian kroner ($ 101 million). Hydro has questioned the decline in aluminum prices, production constraints and the effects of a cyberattack.
Hydro's chief financial officer, Eivind Kallevik, said Tuesday on CNBC's "Street Signs" show that weaker demand was more severe in Europe and especially in the group's largest economy, the company said. # 39; Germany.
"We believe that construction is weak and that automotive demand and production are also raising concerns that affect demand for aluminum," Kallevik said.
The CFO added that there was also a "relatively low growth" in China but that, at the same time, the offer had changed little, which meant that the market was approaching a balance for the first time. times since "several years".
The Hydro plant in Alunorte, Brazil refines bauxite alumina, which is then used to produce aluminum.
The refinery was hit by a partial shutdown due to heavy rains and floods, but Kallevik said production recovered by 85 percent in June, which exceeded expectations. He added that it was hoped to reach 95% of the total production capacity by 2020.
Hydro's operations were also hit hard last March when a cyber attack hit several operations.
The company 's shares rose about 4% Tuesday morning, following the announcement of an increase in production in its bauxite and alumina divisions. Despite the rise on Tuesday, the stock price has declined about 20% since the beginning of the year.
Source link
