Norsk hydro: 50 percent of global aluminium plant losses were reduced in response to falling aluminium prices

Norsk hydro: 50 percent of global aluminium plant losses were reduced in response to falling aluminium prices
Norsk Hydro, one of the world’s largest aluminium producers, has decided to cut costs in response to falling prices triggered by a glut of metals in China.
The company plans to reduce annual costs by 2.9 billion kronor ($335.7 million) by the end of 2019, of which 1.1 billion will be completed in 2016.
Norsk Hydro said China’s aluminium production would exceed the country’s consumption capacity by 2-2.5 million tonnes in 2016, resulting in a global oversupply of about 1 million tonnes.
Svein Richard Brandtzaeg, the company’s chief executive, says the market is worse than it was a year ago.
But it added that the market outlook would improve by 2017.
Herwisa, the global oversupply of aluminum products will also be reduced.
Brandtzaeg said it estimated at today’s prices that 50 percent of the world’s aluminum smelters would incur cash losses and plan to cut production.
Production cuts are also key to balancing supply and demand in the market.
Norsk Hydro expects global demand to rise 4 percent this year and 4 ber 5 percent by 2016.

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