Aluminum premiums hurting remelt business: Brandtzaeg
Sep 26, 2012 | 10:46 AM
| Andrea Hotter
Tags
Norsk Hydro,
aluminum premiums,
Svein Richard Brandtzaeg,
Andrea Hotter
NEW YORK — Record-high aluminum premiums are typically positive for producers, but are starting to eat into the profits of companies that remelt metal, according to Norsk Hydro ASA chief executive officer Svein Richard Brandtzaeg.
High premiums are "in general positive" for the company, particularly as it gets paid more for the value-added products it produces, the head of the Norway-based producer told AMM sister publication Metal Bulletin in an interview.
But Hydro also has a significant portion of remelt, where cold metal, or standard ingot, is one of the input costs. "In this part of the business, we have seen reduced profitability due to standard ingot premiums," he said.....
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