Norsk Hydro has decided to “increase capital expenditure by almost 40 percent next year to modernise equipment in expectation of accelerating global demand over the next decade,” reports Reuters.
“The company’s optimism was tinted with caution, however, as it introduced the latest in a string of cost-cutting programmes after the global economic downturn hit industries from automakers to builders and brought a steady decline in benchmark aluminium prices in recent years.”
“Norsk Hydro expects an improving demand outlook to take hold next year and said it would lift capital expenditure to 4.3 billion crowns ($700 million) from an estimated 3.1 billion crowns in 2013.”
“‘World aluminium demand outside China is estimated to grow 2 percent in 2013 and 2-4 percent in 2014,’ the company said in a statement ahead of a capital markets day. ‘The global aluminium market is expected to show solid long-term growth of 4-6 percent annually over the next 10 years.'”
“The extra expenditure will be used to modernise key equipment at several aluminium smelters, Chief Executive Svein Richard Brandtzaeg said.”
In metal price news…
The biggest mover this week was Chinese aluminum scrap with a 4.2 percent fall on the weekly Aluminum MMI® to close the week. The price of Chinese aluminum billet fell 0.4 percent over the past week. This was the fourth week in a row of declining prices. The cash price of Chinese aluminum remained steady from the previous week. Chinese aluminum bar remained unchanged for the week.
The primary aluminum cash price fell 1.1 percent on the LME over the past week to $1,701 per metric ton. This was the third week in a row of declining prices. The aluminum 3-month price fell 1.1 percent on the LME over the past week to $1,747 per metric ton. This was the third week in a row of declining prices. The Indian aluminum cash price fell 1.1 percent over the past week. This was the third week in a row of declining prices.
Following a steady week, prices for Korean 3003 coil premium over 1050 sheet closed flat. Korean 5052 coil premium over 1050 sheet traded sideways last week. European 5083 plate remained essentially flat from the previous week. Prices for European 1050 aluminum remained constant.
The Aluminum MMI® collects and weights 12 global aluminum price points to provide a unique view into aluminum price trends. For more information on the Aluminum MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.