Raises 2023 capex to NOK 20.5 bln from NOK 16.5 bln
Warns on Russian aluminium in LME warehouses
Shares down 2.8, lagging Oslo bourse

OSLO, July 21 Reuters Aluminium producer Hydro raised its guidance for capital expenditure this year and said global demand for aluminium demand was weakening, pressuring its shares, as it reported a drop in quarterly earnings in line with forecasts.

Hydro guided for capital expenditure of 20.5 billion crowns 2.04 billion this year, up from 16.5 billion crowns seen previously, partly due to inflation and the effects of the weaker currency against the euro and the dollar.

The weakened outlook was due to decreasing demand for the lightweight metal, used in a range of sectors from automakers to construction, as well as the resumption of some Chinese production, increasing global supply.

The results reflect a weaker market, Hydro said in a statement. Demand for primary aluminium is declining in the shortterm, while Chinese supply is returning, leading to the global primary balance weakening in recent months.

Hydro said it was also concerned about the growing share of Russian aluminium in the warehouses of the London Metal Exchange, jeopardising the benchmark status of the aluminium contract.

It said on Friday it had written this week to the LME to urge it to reconsider its decision not to ban Russian aluminium.

Adjusted earnings before interest, tax, depreciation and amortisation fell to 7.1 billion crowns 706 million for AprilJune…