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Aluminum Prices Remain Uncertain as Norsk Hydro and Alcoa Face Q2 Demand Dip

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Russian Aluminum Dominance Sparks Sanctions Debate Amidst Global Market Weakness

Amidst a rebound in short-term aluminum prices. The Aluminum Monthly Metals Index (MMI) saw a modest 0.4% rise from July to August.

Norsk Hydro and Alcoa experienced Q2 demand drops, causing earnings to plummet, with Norsk Hydro’s EBITA falling 39% YoY and Alcoa’s adjusted EBITDA plummeting almost 85% from Q2 2022.

Falling premiums and weak manufacturing sectors in the US and Europe further dampened demand.

As Russian aluminum’s dominance grows, calls for sanctions intensify, with Norsk Hydro urging the LME to reconsider Russian-origin aluminum admissions due to its significant market presence.

Russian aluminum accounted for 80% of LME stocks in June. Amid capacity returns in China, the balance of supply sources and the impact on prices remain uncertain.

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