OSLO – Norwegian metals maker Norsk Hydro expects global primary aluminium demand to grow by 2% to 3% in 2019, down from the 4% seen for 2018, it said on Thursday.
Trade sanctions and tariffs are impacting global flows of aluminium and increasing uncertainty on economic growth.
Hydro expects a continued deficit in the global primary aluminium market in 2019 despite the slower economic growth expectations.
Long-term, Hydro kept its view of global aluminium demand to grow by 2% to 3% a year over the next 10 years, with semis demand estimated at 3% and recycling at 3% to 4% a year over the same period.
The company still has no firm timeline for the restart of full output at its key Brazilian alumina plant, which has been operating at half capacity since February following a spill of untreated water.
"We are aiming to establish a common platform with authorities and the court system to have an aligned way forward towards full production, utilizing the best available technology," CEO Svein Richard Brandtzæg said in the statement.
Alunorte, the world's largest alumina refinery, has a capacity of about 6.3-million tonnes of alumina a year.
Hydro shares were up 1.2% in a broadly firmer metals sector following US producer Alcoa's 7.7% rise on Wednesday.