Norwegian aluminium giant Norsk Hydro is considering a cut in its existing production in light of a dramatic global drop in demand for aluminium and aluminium products.
Norsk Hydro said the crisis has led to "substantial problems for the construction and automotive industries, which are among the metal industry's most important markets".
"This has again triggered a dramatic decline in demand for aluminium products," added Hydro, which has in past years restructured its aluminium products business, including exiting numerous less profitable automotive parts ventures.
So much for that big announcement in Labrador about a new smelter.
So much too for the idea that growth in China and India would offset any American downturn in the markets.
“The industries, economies are now in serious pain through the world,” said Stephen Briggs, analyst at RBS Global Banking & Markets.
“Everybody – even the most bullish people – have now given up on the decoupling idea,” Mr. Briggs said, referring to the argument that China was making up for any demand slowdown in the United States.
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